Energy Transfer LP (ET) Dips More Than Broader Markets: What You Should Know
Energy Transfer LP (ET) closed at $6.50 in the latest trading session, marking a -1.81% move from the prior day. This move lagged the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.57%, and the Nasdaq, a tech-heavy index, added 0.09%.
Heading into today, shares of the energy-related services provider had gained 2.8% over the past month, lagging the Oils-Energy sector's gain of 10.02% and the S&P 500's gain of 4.43% 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%. Our most recent consensus estimate is calling for quarterly revenue of $10.33 billion, down 24.71% from the year-ago period.
Investors should also note any recent changes to analyst estimates for ET. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.5% lower. ET is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, ET is holding a Forward P/E ratio of 4.92. This valuation marks a discount compared to its industry's average Forward P/E of 7.89.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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