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ET Stock Trades Above 50-Day SMA: Is it Time to Add to Your Portfolio?
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Key Takeaways
Energy Transfer trades above its 50-day SMA, signaling a bullish trend for the stock.
The firm invests billions in expanding its 140,000-mile pipeline and storage network.
Nearly 90% of ET's earnings come from fee-based contracts, ensuring stable cash flows.
Energy Transfer LP (ET - Free Report) is trading above its 50-day simple moving average (SMA), signaling a bullish trend. The oil and gas midstream firm owns a wide network of pipelines across the United States and is pursuing opportunities to serve growing power loads from new demand centers across its network.
The firm is also a top exporter of liquefied petroleum gas and is working to expand natural gas liquids (NGL) export facilities to meet the rising demand for NGL globally.
ET’s 50-Day SMA
Image Source: Zacks Investment Research
The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of a stock’s uptrend or downtrend.
The ET stock closed at $17.46 on Aug. 21. In the past year, the firm’s units have gained 8.9% compared with the industry’s 2.7% rally.
Price Performance (One Year)
Image Source: Zacks Investment Research
Should you consider adding ET to your portfolio only based on positive price movements? Let’s delve deeper and find out the factors that can help investors decide whether it is a good entry point to add ET stock to their portfolio.
Contributing Factors to ET Stock’s Performance
Energy Transfer is well-positioned to leverage its extensive and diversified midstream infrastructure, spanning nearly 140,000 miles of pipelines across North America. Covering natural gas, NGLs, crude oil and refined products, this integrated system offers a significant competitive edge. Its scale and connectivity enable the company to capture volumes from key basins like the Permian, Eagle Ford and Marcellus, while seamlessly connecting them to major demand markets and export hubs.
Energy Transfer is strategically positioned to benefit from growing U.S. natural gas demand through its broad network of intrastate and interstate storage assets. With storage capacity located along key demand corridors, the company provides flexibility, reliability, and the ability to manage seasonal fluctuations and peak needs. Together, these current storage capabilities and planned expansion of storage will continue to strengthen ET’s role as a vital balancing player in U.S. gas markets, underpinning long-term earnings stability and growth.
Energy Transfer, through its systematic capital expenditure in high-return projects across the vast midstream network, strengthens operational efficiency and broadens service offerings. The firm invested $2.4 billion in the first half of 2025 and plans to invest $5 billion in the full year to further expand and strengthen its infrastructure.
Energy Transfer derives substantial strength from its diversified asset base supported by fee-based contracts, which serve as the foundation of its revenue model. Nearly 90% of the company’s earnings come from these agreements, providing insulation from commodity price swings and ensuring consistent, stable cash flows even during periods of market volatility.
ET’s Units are Trading at a Discount
Energy Transfer units trade at a discount relative to the industry. The company’s trailing 12-month Enterprise Value-to-EBITDA ratio stands at 9.29x, below the industry average of 10.65x, suggesting that ET is currently undervalued compared to its peers.
Image Source: Zacks Investment Research
Another firm, Delek Logistics Partner (DKL - Free Report) , is trading at an EV/EBITDA of 16.54X, at a premium compared with its industry.
ET’s Estimates Moving North
The Zacks Consensus Estimate for Energy Transfer’s 2025 and 2026 earnings per unit indicates year-over-year growth of 9.38% and 10.71%, respectively.
Image Source: Zacks Investment Research
ONEOK Inc. (OKE - Free Report) , operating in the same industry, also registered an increase in earnings estimates. The Zacks Consensus Estimate for ONEOK’s 2025 and 2026 earnings per share indicates year-over-year growth of 6.36% and 15.45%, respectively.
ET’s Rising Distribution Rates
ET’s current quarterly cash distribution rate is 33 cents per Energy Transfer common unit. Management has raised distribution rates 16 times in the past five years, and the current payout ratio is 102%.
Delek Logistics raised distribution rates 20 times in the past five years, and the current payout ratio is 151%.
ET Stock’s ROE is Lower Than the Industry
Energy Transfer’s trailing 12-month return on equity is 11.08%, lower than the industry average of 13.65%. Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.
Image Source: Zacks Investment Research
ONEOK’s ROE is better than the industry. It is currently pegged at 14.59%, better than the industry average.
Wrapping Up
Energy Transfer, with more than 140,000 miles of pipeline and related infrastructure, is poised well to benefit from the improving oil, natural gas and natural gas liquid production volumes in the United States. The firm, with its fee-based earnings, storage facilities and strategic acquisitions, is expected to create more value for its unitholders.
Those who have this Zacks Rank #3 (Hold) stock in their portfolio can stay invested and enjoy the regular cash distribution.
However, as the firm’s ROE is lower than the industry, it will be better for the investors to wait a little longer and find a better entry point.
Image: Bigstock
ET Stock Trades Above 50-Day SMA: Is it Time to Add to Your Portfolio?
Key Takeaways
Energy Transfer LP (ET - Free Report) is trading above its 50-day simple moving average (SMA), signaling a bullish trend. The oil and gas midstream firm owns a wide network of pipelines across the United States and is pursuing opportunities to serve growing power loads from new demand centers across its network.
The firm is also a top exporter of liquefied petroleum gas and is working to expand natural gas liquids (NGL) export facilities to meet the rising demand for NGL globally.
ET’s 50-Day SMA
Image Source: Zacks Investment Research
The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of a stock’s uptrend or downtrend.
The ET stock closed at $17.46 on Aug. 21. In the past year, the firm’s units have gained 8.9% compared with the industry’s 2.7% rally.
Price Performance (One Year)
Image Source: Zacks Investment Research
Should you consider adding ET to your portfolio only based on positive price movements? Let’s delve deeper and find out the factors that can help investors decide whether it is a good entry point to add ET stock to their portfolio.
Contributing Factors to ET Stock’s Performance
Energy Transfer is well-positioned to leverage its extensive and diversified midstream infrastructure, spanning nearly 140,000 miles of pipelines across North America. Covering natural gas, NGLs, crude oil and refined products, this integrated system offers a significant competitive edge. Its scale and connectivity enable the company to capture volumes from key basins like the Permian, Eagle Ford and Marcellus, while seamlessly connecting them to major demand markets and export hubs.
Energy Transfer is strategically positioned to benefit from growing U.S. natural gas demand through its broad network of intrastate and interstate storage assets. With storage capacity located along key demand corridors, the company provides flexibility, reliability, and the ability to manage seasonal fluctuations and peak needs. Together, these current storage capabilities and planned expansion of storage will continue to strengthen ET’s role as a vital balancing player in U.S. gas markets, underpinning long-term earnings stability and growth.
Energy Transfer, through its systematic capital expenditure in high-return projects across the vast midstream network, strengthens operational efficiency and broadens service offerings. The firm invested $2.4 billion in the first half of 2025 and plans to invest $5 billion in the full year to further expand and strengthen its infrastructure.
Energy Transfer derives substantial strength from its diversified asset base supported by fee-based contracts, which serve as the foundation of its revenue model. Nearly 90% of the company’s earnings come from these agreements, providing insulation from commodity price swings and ensuring consistent, stable cash flows even during periods of market volatility.
ET’s Units are Trading at a Discount
Energy Transfer units trade at a discount relative to the industry. The company’s trailing 12-month Enterprise Value-to-EBITDA ratio stands at 9.29x, below the industry average of 10.65x, suggesting that ET is currently undervalued compared to its peers.
Image Source: Zacks Investment Research
Another firm, Delek Logistics Partner (DKL - Free Report) , is trading at an EV/EBITDA of 16.54X, at a premium compared with its industry.
ET’s Estimates Moving North
The Zacks Consensus Estimate for Energy Transfer’s 2025 and 2026 earnings per unit indicates year-over-year growth of 9.38% and 10.71%, respectively.
Image Source: Zacks Investment Research
ONEOK Inc. (OKE - Free Report) , operating in the same industry, also registered an increase in earnings estimates. The Zacks Consensus Estimate for ONEOK’s 2025 and 2026 earnings per share indicates year-over-year growth of 6.36% and 15.45%, respectively.
ET’s Rising Distribution Rates
ET’s current quarterly cash distribution rate is 33 cents per Energy Transfer common unit. Management has raised distribution rates 16 times in the past five years, and the current payout ratio is 102%.
Delek Logistics raised distribution rates 20 times in the past five years, and the current payout ratio is 151%.
ET Stock’s ROE is Lower Than the Industry
Energy Transfer’s trailing 12-month return on equity is 11.08%, lower than the industry average of 13.65%. Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.
Image Source: Zacks Investment Research
ONEOK’s ROE is better than the industry. It is currently pegged at 14.59%, better than the industry average.
Wrapping Up
Energy Transfer, with more than 140,000 miles of pipeline and related infrastructure, is poised well to benefit from the improving oil, natural gas and natural gas liquid production volumes in the United States. The firm, with its fee-based earnings, storage facilities and strategic acquisitions, is expected to create more value for its unitholders.
Those who have this Zacks Rank #3 (Hold) stock in their portfolio can stay invested and enjoy the regular cash distribution.
However, as the firm’s ROE is lower than the industry, it will be better for the investors to wait a little longer and find a better entry point.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.