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Energy Transfer LP (ET) Gains But Lags Market: What You Should Know


Energy Transfer LP (ET) closed at $7.98 in the latest trading session, marking a +0.63% move from the prior day. This move lagged the S&P 500’s daily gain of 0.93%.

Heading into today, shares of the energy-related services provider had lost 0.74% over the past month, outpacing the Oils-Energy sector’s loss of 4.5% and lagging the S&P 500’s gain of 5.84% in that time.

ET will be looking to display strength as it nears its next earnings release. On that day, ET is projected to report earnings of $0.23 per share, which would represent year-over-year growth of 27.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.66 billion, down 8.34% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.90 per share and revenue of $47.64 billion. These totals would mark changes of +475% and +22.29%, respectively, from last year.

Investors should also note any 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 11.81% lower. ET is currently a Zacks Rank #3 (Hold).

Investors should also note ET’s current valuation metrics, including its Forward P/E ratio of 8.9. For comparison, its industry has an average Forward P/E of 9.89, which means ET is trading at a discount to the group.

The Oil and Gas – Production Pipeline – MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 23% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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2021-04-21 16:50:09

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