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Energy Transfer LP (ET) Stock Sinks As Market Gains: 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 0.91% gain on the day. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 1.02%.

Coming into today, shares of the energy-related services provider had lost 11.4% in the past month. In that same time, the Oils-Energy sector lost 2.32%, while the S&P 500 lost 2.74%.

ET will be looking to display strength as it nears its next earnings release. On that day, ET is projected to report earnings of $0.37 per share, which would represent year-over-year growth of 15.63%. Meanwhile, our latest consensus estimate is calling for revenue of $14.28 billion, down 1.59% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.33 per share and revenue of $55.67 billion. These totals would mark changes of +15.65% and +2.93%, respectively, from last year.

Any recent changes to analyst estimates for ET should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 0.4% higher within the past month. ET is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that ET has a Forward P/E ratio of 9.27 right now. For comparison, its industry has an average Forward P/E of 11.38, which means ET is trading at a discount to the group.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% 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.

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


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