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

Zacks Equity Research

Energy Transfer LP (ET) closed the most recent trading day at $14.98, moving +0.07% from the previous trading session. This move lagged the S&P 500's daily gain of 0.47%. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq gained 0.85%.

Coming into today, shares of the energy-related services provider had gained 7.08% in the past month. In that same time, the Oils-Energy sector lost 1.63%, while the S&P 500 gained 2.08%.

Wall Street will be looking for positivity from ET as it approaches its next earnings report date. The company is expected to report EPS of $0.36, up 9.09% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.32 billion, up 1.44% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.32 per share and revenue of $55.61 billion. These totals would mark changes of +14.78% and +2.82%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for ET. These revisions help to show the ever-changing nature of near-term business trends. 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. 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 0.06% lower. ET is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note ET's current valuation metrics, including its Forward P/E ratio of 11.31. Its industry sports an average Forward P/E of 12.9, so we one might conclude that ET is trading at a discount 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 47, which puts it in the top 19% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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