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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 $12.89 in the latest trading session, marking a +0.7% move from the prior day. This change lagged the S&P 500's 1.5% gain on the day. Elsewhere, the Dow gained 1.44%, while the tech-heavy Nasdaq added 2.1%.

Prior to today's trading, shares of the energy-related services provider had lost 6.43% over the past month. This has was narrower than the Oils-Energy sector's loss of 11.69% and lagged the S&P 500's gain of 0.54% in that time.

ET will be looking to display strength as it nears its next earnings release, which is expected to be February 19, 2020. On that day, ET is projected to report earnings of $0.34 per share, which would represent year-over-year growth of 30.77%. Our most recent consensus estimate is calling for quarterly revenue of $13.52 billion, down 0.38% from the year-ago period.

Investors should also note any recent changes to analyst estimates for ET. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.23% lower. ET is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, ET is currently trading at a Forward P/E ratio of 9.15. This valuation marks a discount compared to its industry's average Forward P/E of 10.47.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 26% 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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