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Energy Transfer LP (ET) Gains But Lags Market: What You Should Know

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Energy Transfer LP (ET - Free Report) closed at $15.22 in the latest trading session, marking a +0.2% move from the prior day. The stock lagged the S&P 500's daily gain of 0.36%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.34%.

Coming into today, shares of the energy-related services provider had gained 2.22% in the past month. In that same time, the Oils-Energy sector lost 0.55%, while the S&P 500 gained 0.64%.

Wall Street will be looking for positivity from ET as it approaches its next earnings report date. On that day, ET is projected to report earnings of $0.34 per share, which would represent a year-over-year decline of 19.05%. Our most recent consensus estimate is calling for quarterly revenue of $14.79 billion, up 24.45% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.37 per share and revenue of $61.33 billion, which would represent changes of +19.13% and +13.4%, respectively, from the prior year.

Any recent changes to analyst estimates for ET should also be noted by investors. These revisions help to show the ever-changing nature of 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.37% higher. ET is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, ET currently has a Forward P/E ratio of 11.07. This valuation marks a discount compared to its industry's average Forward P/E of 12.12.

Investors should also note that ET has a PEG ratio of 0.45 right now. 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 3.02 as of yesterday's close.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.


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