Back to top

Image: Bigstock

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

Read MoreHide Full Article

Energy Transfer LP (ET - Free Report) closed at $7.12 in the latest trading session, marking a +1.42% move from the prior day. The stock lagged the S&P 500's daily gain of 1.54%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, added 1.87%.

Coming into today, shares of the energy-related services provider had lost 14.5% in the past month. In that same time, the Oils-Energy sector lost 0.57%, while the S&P 500 gained 0.57%.

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 $0.32 per share, which would represent a year-over-year decline of 3.03%. Meanwhile, our latest consensus estimate is calling for revenue of $11.85 billion, down 14.63% from the prior-year quarter.

ET's full-year Zacks Consensus Estimates are calling for earnings of $0.58 per share and revenue of $50.70 billion. These results would represent year-over-year changes of -57.35% and -6.48%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Within the past 30 days, our consensus EPS projection has moved 4.1% lower. ET is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, ET is holding a Forward P/E ratio of 12.02. Its industry sports an average Forward P/E of 8.59, so we one might conclude that ET is trading at a premium comparatively.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 9% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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