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

Zacks Equity Research

Energy Transfer LP (ET) closed at $4.81 in the latest trading session, marking a +0.42% move from the prior day. This move lagged the S&P 500's daily gain of 9.38%. Meanwhile, the Dow gained 11.37%, and the Nasdaq, a tech-heavy index, added 8.12%.

Prior to today's trading, shares of the energy-related services provider had lost 58.53% over the past month. This has lagged the Oils-Energy sector's loss of 51.04% and the S&P 500's loss of 32.94% in that time.

Investors will be hoping for strength from ET as it approaches its next earnings release. On that day, ET is projected to report earnings of $0.32 per share, which would represent a year-over-year decline of 13.51%. Our most recent consensus estimate is calling for quarterly revenue of $13.99 billion, up 6.6% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.30 per share and revenue of $58.25 billion. These totals would mark changes of -4.41% and +7.45%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for ET. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.17% lower. ET is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ET has a Forward P/E ratio of 3.68 right now. This represents a discount compared to its industry's average Forward P/E of 4.46.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 40% 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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