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

·3-min read

Energy Transfer LP (ET) closed at $10.72 in the latest trading session, marking a -1.92% move from the prior day. This change lagged the S&P 500's daily gain of 0.33%.

Heading into today, shares of the energy-related services provider had gained 9.19% over the past month, outpacing the Oils-Energy sector's gain of 4.91% and the S&P 500's gain of 1.74% in that time.

Wall Street will be looking for positivity from ET as it approaches its next earnings report date. In that report, analysts expect ET to post earnings of $0.24 per share. This would mark year-over-year growth of 84.62%. Our most recent consensus estimate is calling for quarterly revenue of $15.03 billion, up 104.85% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.13 per share and revenue of $61.99 billion, which would represent changes of +987.5% and +59.13%, respectively, from the prior year.

Investors should also note any 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.

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.

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. Within the past 30 days, our consensus EPS projection has moved 6.41% higher. ET is currently a Zacks Rank #3 (Hold).

Looking at its valuation, ET is holding a Forward P/E ratio of 5.14. Its industry sports an average Forward P/E of 10.81, 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 industry currently has a Zacks Industry Rank of 132, which puts it in the bottom 49% 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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