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Energy Transfer LP (ET) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Energy Transfer LP (ET - Free Report) closed at $14.34, marking a +1.56% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.85%. Meanwhile, the Dow gained 0.75%, and the Nasdaq, a tech-heavy index, added 1.29%.

Heading into today, shares of the energy-related services provider had gained 9.97% over the past month, lagging the Oils-Energy sector's gain of 13.78% and the S&P 500's gain of 12.44% in that time.

Wall Street will be looking for positivity from ET as it approaches its next earnings report date. This is expected to be February 20, 2019. The company is expected to report EPS of $0.47, up 14.63% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.82 billion, up 29.39% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for ET. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.24% lower. ET currently has a Zacks Rank of #3 (Hold).

In terms of valuation, ET is currently trading at a Forward P/E ratio of 10.22. For comparison, its industry has an average Forward P/E of 11.93, which means ET is trading at a discount to the group.

Meanwhile, ET's PEG ratio is currently 0.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Production Pipeline - MLB industry currently had an average PEG ratio of 2.26 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 164, putting it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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