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Energy Transfer LP (ET) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Energy Transfer LP (ET) closed at $13.28 in the latest trading session, marking a -1.1% move from the prior day. This move lagged the S&P 500's daily gain of 0.26%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.4%.

Coming into today, shares of the energy-related services provider had lost 2.26% in the past month. In that same time, the Oils-Energy sector gained 9.83%, while the S&P 500 gained 3.92%.

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 12.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.28 billion, down 1.59% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.34 per share and revenue of $55.68 billion, which would represent changes of +16.52% and +2.95%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ET. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 3.66% lower. ET currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, ET is holding a Forward P/E ratio of 10.05. Its industry sports an average Forward P/E of 12.15, 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 group has a Zacks Industry Rank of 59, putting it in the top 24% 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.

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

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