Back to top

Image: Bigstock

Energy Transfer LP (ET) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, Energy Transfer LP (ET - Free Report) closed at $14.98, marking a -0.79% move from the previous day. This move lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.36%.

Heading into today, shares of the energy-related services provider had gained 2.17% over the past month, lagging the Oils-Energy sector's gain of 7.49% and the S&P 500's gain of 8.17% in that time.

Investors will be hoping for strength from ET as it approaches its next earnings release, which is expected to be February 20, 2019. The company is expected to report EPS of $0.43, up 4.88% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.85 billion, up 29.63% from the year-ago period.

Investors might also notice recent changes to analyst estimates for ET. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 10.21% lower. ET is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, ET is holding a Forward P/E ratio of 12. For comparison, its industry has an average Forward P/E of 12.3, which means ET is trading at a discount to the group.

We can also see that ET currently has a PEG ratio of 0.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Production Pipeline - MLB stocks are, on average, holding a PEG ratio of 2.27 based on yesterday's closing prices.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 202, which puts it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Energy Transfer LP (ET) - free report >>

Published in