Energy Transfer LP (ET) Gains As Market Dips: What You Should Know – October 13, 2020
Prior to today’s trading, shares of the energy-related services provider had gained 2.2% over the past month. This has outpaced the Oils-Energy sector’s loss of 3.13% and lagged the S&P 500’s gain of 5.91% in that time.
Wall Street will be looking for positivity from ET as it approaches its next earnings report date. The company is expected to report EPS of $0.22, down 40.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.07 billion, down 17.97% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.23 per share and revenue of $40.77 billion, which would represent changes of -83.09% and -24.79%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ET. These revisions help to show the ever-changing nature of near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 remained stagnant within the past month. ET is currently a Zacks Rank #4 (Sell).
In terms of valuation, ET is currently trading at a Forward P/E ratio of 25.85. Its industry sports an average Forward P/E of 7.22, 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 214, putting it in the bottom 16% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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