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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 the most recent trading day at $7.77, moving -0.77% from the previous trading session. This move lagged the S&P 500's daily gain of 1.31%. At the same time, the Dow added 1.9%, and the tech-heavy Nasdaq gained 1.01%.

ET will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.26, down 21.21% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.44 billion, down 10.35% from the year-ago period.

ET's full-year Zacks Consensus Estimates are calling for earnings of $0.51 per share and revenue of $51.96 billion. These results would represent year-over-year changes of -62.5% and -4.16%, respectively.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 2.99% lower within the past month. ET is currently a Zacks Rank #3 (Hold).

Investors should also note ET's current valuation metrics, including its Forward P/E ratio of 15.51. Its industry sports an average Forward P/E of 9.35, so we one might conclude that ET is trading at a premium comparatively.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% 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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