Back to top

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

Read MoreHide Full Article

In the latest trading session, Energy Transfer LP (ET - Free Report) closed at $15.28, marking a -0.39% move from the previous day. This change lagged the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.42%, and the Nasdaq, a tech-heavy index, added 0.03%.

Coming into today, shares of the energy-related services provider had lost 0.9% in the past month. In that same time, the Oils-Energy sector gained 0.29%, while the S&P 500 gained 2.89%.

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 $0.36 per share, which would represent a year-over-year decline of 14.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.97 billion, up 17.6% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.43 per share and revenue of $58.76 billion. These totals would mark changes of +24.35% and +8.64%, respectively, from last year.

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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.92% higher. ET currently has a Zacks Rank of #2 (Buy).

Investors should also note ET's current valuation metrics, including its Forward P/E ratio of 10.72. This valuation marks a discount compared to its industry's average Forward P/E of 12.3.

Meanwhile, ET's PEG ratio is currently 0.44. 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. ET's industry had an average PEG ratio of 2.95 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 88, putting it in the top 35% 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.

To follow ET in the coming trading sessions, be sure to utilize Zacks.com.


In-Depth Zacks Research for the Tickers Above


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


Energy Transfer LP (ET) - free report >>

Published in