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

Zacks Equity Research

In the latest trading session, Energy Transfer LP (ET) closed at $13.04, marking a -0.5% move from the previous day. This change lagged the S&P 500's 0.08% loss on the day. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.59%.

Heading into today, shares of the energy-related services provider had lost 5.5% over the past month, lagging the Oils-Energy sector's gain of 0.33% and the S&P 500's gain of 2.7% in that time.

Wall Street will be looking for positivity from ET as it approaches its next earnings report date. This is expected to be November 6, 2019. The company is expected to report EPS of $0.37, up 15.63% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.30 billion, down 1.48% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.37 per share and revenue of $55.65 billion, which would represent changes of +19.13% and +2.88%, respectively, from the prior year.

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. 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. The Zacks Consensus EPS estimate has moved 0.77% higher within the past month. ET is currently a Zacks Rank #4 (Sell).

Investors should also note ET's current valuation metrics, including its Forward P/E ratio of 9.04. This valuation marks a discount compared to its industry's average Forward P/E of 11.78.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 27% 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.

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


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