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

Zacks Equity Research
·3 min read

Energy Transfer LP (ET) closed the most recent trading day at $6.16, moving -0.65% from the previous trading session. This change lagged the S&P 500's daily gain of 0.13%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.15%.

Heading into today, shares of the energy-related services provider had gained 0.49% over the past month, outpacing the Oils-Energy sector's loss of 0.04% and lagging the S&P 500's gain of 2.59% in that time.

ET will be looking to display strength as it nears its next earnings release. In that report, analysts expect ET to post earnings of $0.28 per share. This would mark a year-over-year decline of 26.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.33 billion, down 24.73% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.20 per share and revenue of $39.49 billion, which would represent changes of -114.71% and -27.15%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ET. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.35% higher. ET is currently a Zacks Rank #3 (Hold).

Digging into valuation, ET currently has a Forward P/E ratio of 7.09. Its industry sports an average Forward P/E of 7.27, 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 202, putting it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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