Why the Market Dipped But Energy Transfer LP (ET) Gained Today

In This Article:

Energy Transfer LP (ET) ended the recent trading session at $19.28, demonstrating a +0.1% swing from the preceding day's closing price. This change outpaced the S&P 500's 1.11% loss on the day. On the other hand, the Dow registered a loss of 0.77%, and the technology-centric Nasdaq decreased by 1.49%.

The the stock of energy-related services provider has fallen by 0.82% in the past month, leading the Oils-Energy sector's loss of 8.07% and undershooting the S&P 500's gain of 0.4%.

The upcoming earnings release of Energy Transfer LP will be of great interest to investors. The company is forecasted to report an EPS of $0.35, showcasing a 5.41% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $24.29 billion, up 18.31% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.32 per share and a revenue of $88.93 billion, indicating changes of +21.1% and +13.16%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Energy Transfer LP. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 1.49% lower within the past month. Energy Transfer LP is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Energy Transfer LP is presently being traded at a Forward P/E ratio of 14.59. This represents a premium compared to its industry's average Forward P/E of 13.54.

It's also important to note that ET currently trades at a PEG ratio of 0.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Oil and Gas - Production Pipeline - MLB stocks are, on average, holding a PEG ratio of 1.4 based on yesterday's closing prices.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 32% of all industries, numbering over 250.