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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 daily gain of 0.29%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.19%.

Heading into today, shares of the energy-related services provider had lost 4.3% over the past month, lagging the Oils-Energy sector's loss of 2.64% and the S&P 500's gain of 0.32% in that time.

Wall Street will be looking for positivity from ET as it approaches its next earnings report date. 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 $14.30 billion, down 1.48% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.37 per share and revenue of $55.65 billion. These totals would mark changes of +19.13% and +2.88%, respectively, from last year.

Investors might also notice 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.

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

Digging into valuation, ET currently has a Forward P/E ratio of 9.28. This valuation marks a discount compared to its industry's average Forward P/E of 11.79.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% 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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