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ET Stock Slips Below 50-Day SMA: What Should Investors Do Now?
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Key Takeaways
ET trades below its 50-day SMA, down 23.6% from its 52-week high, signaling short-term weakness.
Energy Transfer continues to invest in growth projects to expand and enhance its asset base.
ET generates 90% of revenue from fee-based contracts, limiting exposure to commodity price swings.
Energy Transfer (ET - Free Report) has been trading below its 50-day simple moving average (SMA), signaling a short-term bearish trend. The stock closed at $16.39 as of Dec. 24, 2025, down 23.6% from its 52-week high of $21.45.
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 an uptrend or downtrend.
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 cater to the rising demand globally.
Another firm having extensive midstream operations in the United States is Plains All American Pipeline (PAA - Free Report) . PAA’s units have gained 1.5% in the last six months, outperforming the industry’s return in the same time frame.
Given the weakness in its share price, will it be a correct choice to add this oil-energy stock to your portfolio? Let us 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.
Tailwinds That Support ET’s Operation
Energy Transfer operates more than 140,000 miles of pipelines and related infrastructure across 44 U.S. states. Its diversified and well-balanced asset portfolio underpins stable earnings. The company’s oil and gas pipelines, gathering and processing systems, and storage assets are strategically positioned across key U.S. basins and high-growth demand markets. In 2025, Energy Transfer plans to invest $4.6 billion in growth projects to further expand and enhance its asset base.
Energy Transfer’s assets are strategically positioned across major U.S. production basins and high-demand regions, providing a strong earnings foundation. Its diversified portfolio, including oil and gas pipelines, gathering and processing systems, and storage facilities, allows the company to efficiently serve a broad range of markets.
Most of Energy Transfer’s revenues come from fee-based contracts backed by a strong customer base. Nearly 90% of its revenue is generated through fees for transportation and storage services, which significantly reduces the company’s exposure to commodity price volatility.
Energy Transfer’s insiders and board members have regularly added to their holdings, signaling strong confidence in its future performance and steady growth trajectory. The firm’s insider ownership is estimated at about 10%, a level that surpasses many of its industry counterparts. Insiders’ transactions are often considered a yardstick for judging the long-term financial health of the firm.
Over the past year, Energy Transfer has contracted more than 6 billion cubic feet per day (Bcf/d) of pipeline capacity under agreements with a weighted average term of 18 years, expected to generate over $25 billion in firm transportation fee revenues.
Headwinds for Energy Transfer
Energy Transfer depends on certain key producers for its supply of natural gas. To the extent that these and other producers may reduce the volumes of natural gas that they supply to ET, the loss of any of these key producers could adversely impact the firm’s financial results.
ET’s Earnings Estimates Moving Up
The Zacks Consensus Estimate for Energy Transfer’s 2025 and 2026 earnings per unit indicates year-over-year growth of 3.91% and 15.25%, respectively.
Image Source: Zacks Investment Research
Another firm, operating in the space with strong operations, is Delek Logistics Partners (DKL - Free Report) . The Zacks Consensus Estimate for Delek Logistics Partners’ 2025 and 2026 earnings per unit indicates year-over-year growth of 23.08% and 37.91%, respectively.
ET Stock Trading at a Discount
Energy Transfer’s units are somewhat inexpensive relative to its industry. ET’s current trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA) is 8.9X compared with the industry average of 10.53X.
Image Source: Zacks Investment Research
ET Shares More With Unitholders
The company’s current quarterly cash distribution rate is 33.25 cents per Energy Transfer common unit. ET’s management has raised distribution rates 16 times in the past five years, and the current distribution yield is 8.11%, outperforming its industry’s yield of 6.21%.
ET Stock’s ROE is Lower Than the Industry
Energy Transfer’s trailing 12-month return on equity (“ROE”) is 10.71%, lower than the industry average of 13.28%. ROE, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.
Image Source: Zacks Investment Research
Summing Up
With more than 140,000 miles of pipelines and related infrastructure, Energy Transfer is well-positioned to benefit from continued growth in U.S. oil, natural gas and NGL production. Its fee-based revenue model and disciplined acquisitions enhance its ability to generate long-term value for unitholders, while expanding processing capacity is providing additional operational and earnings support.
Yet, at present, the firm’s ROE is lower than the industry average; it will be better for the new investors to wait a little longer and find a better entry point.
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ET Stock Slips Below 50-Day SMA: What Should Investors Do Now?
Key Takeaways
Energy Transfer (ET - Free Report) has been trading below its 50-day simple moving average (SMA), signaling a short-term bearish trend. The stock closed at $16.39 as of Dec. 24, 2025, down 23.6% from its 52-week high of $21.45.
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 an uptrend or downtrend.
ET’s 50 Day SMA
Image Source: Zacks Investment Research
In the past six months, ET units have declined 6.4% wider than the Zacks Oil and Gas - Production Pipeline - MLB industry’s loss of 1.7%.
ET Price Performance
Image Source: Zacks Investment Research
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 cater to the rising demand globally.
Another firm having extensive midstream operations in the United States is Plains All American Pipeline (PAA - Free Report) . PAA’s units have gained 1.5% in the last six months, outperforming the industry’s return in the same time frame.
Given the weakness in its share price, will it be a correct choice to add this oil-energy stock to your portfolio? Let us 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.
Tailwinds That Support ET’s Operation
Energy Transfer operates more than 140,000 miles of pipelines and related infrastructure across 44 U.S. states. Its diversified and well-balanced asset portfolio underpins stable earnings. The company’s oil and gas pipelines, gathering and processing systems, and storage assets are strategically positioned across key U.S. basins and high-growth demand markets. In 2025, Energy Transfer plans to invest $4.6 billion in growth projects to further expand and enhance its asset base.
Energy Transfer’s assets are strategically positioned across major U.S. production basins and high-demand regions, providing a strong earnings foundation. Its diversified portfolio, including oil and gas pipelines, gathering and processing systems, and storage facilities, allows the company to efficiently serve a broad range of markets.
Most of Energy Transfer’s revenues come from fee-based contracts backed by a strong customer base. Nearly 90% of its revenue is generated through fees for transportation and storage services, which significantly reduces the company’s exposure to commodity price volatility.
Energy Transfer’s insiders and board members have regularly added to their holdings, signaling strong confidence in its future performance and steady growth trajectory. The firm’s insider ownership is estimated at about 10%, a level that surpasses many of its industry counterparts. Insiders’ transactions are often considered a yardstick for judging the long-term financial health of the firm.
Over the past year, Energy Transfer has contracted more than 6 billion cubic feet per day (Bcf/d) of pipeline capacity under agreements with a weighted average term of 18 years, expected to generate over $25 billion in firm transportation fee revenues.
Headwinds for Energy Transfer
Energy Transfer depends on certain key producers for its supply of natural gas. To the extent that these and other producers may reduce the volumes of natural gas that they supply to ET, the loss of any of these key producers could adversely impact the firm’s financial results.
ET’s Earnings Estimates Moving Up
The Zacks Consensus Estimate for Energy Transfer’s 2025 and 2026 earnings per unit indicates year-over-year growth of 3.91% and 15.25%, respectively.
Image Source: Zacks Investment Research
Another firm, operating in the space with strong operations, is Delek Logistics Partners (DKL - Free Report) . The Zacks Consensus Estimate for Delek Logistics Partners’ 2025 and 2026 earnings per unit indicates year-over-year growth of 23.08% and 37.91%, respectively.
ET Stock Trading at a Discount
Energy Transfer’s units are somewhat inexpensive relative to its industry. ET’s current trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA) is 8.9X compared with the industry average of 10.53X.
Image Source: Zacks Investment Research
ET Shares More With Unitholders
The company’s current quarterly cash distribution rate is 33.25 cents per Energy Transfer common unit. ET’s management has raised distribution rates 16 times in the past five years, and the current distribution yield is 8.11%, outperforming its industry’s yield of 6.21%.
ET Stock’s ROE is Lower Than the Industry
Energy Transfer’s trailing 12-month return on equity (“ROE”) is 10.71%, lower than the industry average of 13.28%. ROE, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.
Image Source: Zacks Investment Research
Summing Up
With more than 140,000 miles of pipelines and related infrastructure, Energy Transfer is well-positioned to benefit from continued growth in U.S. oil, natural gas and NGL production. Its fee-based revenue model and disciplined acquisitions enhance its ability to generate long-term value for unitholders, while expanding processing capacity is providing additional operational and earnings support.
Investors holding this Zacks Rank #3 (Hold) stock can consider maintaining their positions and benefit from its steady cash distributions. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Yet, at present, the firm’s ROE is lower than the industry average; it will be better for the new investors to wait a little longer and find a better entry point.