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Energy Transfer LP (ET) Registers a Bigger Fall Than the Market: Important Facts to Note

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Energy Transfer LP (ET - Free Report) ended the recent trading session at $17.81, demonstrating a -1.77% change from the preceding day's closing price. This change lagged the S&P 500's 0.11% loss on the day. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, lost 0.82%.

Heading into today, shares of the energy-related services provider had gained 3.72% over the past month, lagging the Oils-Energy sector's gain of 4.89% and the S&P 500's gain of 5.17%.

Investors will be eagerly watching for the performance of Energy Transfer LP in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.32, indicating a 8.57% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $24.73 billion, indicating a 19.31% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.44 per share and revenue of $97.68 billion. These totals would mark changes of +12.5% and +18.15%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Energy Transfer LP. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Energy Transfer LP possesses a Zacks Rank of #2 (Buy).

Looking at valuation, Energy Transfer LP is presently trading at a Forward P/E ratio of 12.61. This valuation marks a premium compared to its industry average Forward P/E of 12.59.

We can additionally observe that ET currently boasts a PEG ratio of 0.59. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Production Pipeline - MLB industry currently had an average PEG ratio of 1.13 as of yesterday's close.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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