Energy Transfer LP (ET) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3 min read

In the latest trading session, Energy Transfer LP (ET) closed at $6.18, marking a -1.9% move from the previous day. This change lagged the S&P 500's daily loss of 1.86%. Elsewhere, the Dow lost 2.3%, while the tech-heavy Nasdaq lost 1.64%.

Prior to today's trading, shares of the energy-related services provider had gained 14.13% over the past month. This has outpaced the Oils-Energy sector's gain of 1.94% and the S&P 500's gain of 7.63% in that time.

Investors will be hoping for strength from ET as it approaches its next earnings release. On that day, ET is projected to report earnings of $0.23 per share, which would represent a year-over-year decline of 37.84%. Our most recent consensus estimate is calling for quarterly revenue of $9.12 billion, down 32.41% from the year-ago period.

ET's full-year Zacks Consensus Estimates are calling for earnings of $0.28 per share and revenue of $38.23 billion. These results would represent year-over-year changes of -79.41% and -29.48%, respectively.

It is also important to note the 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.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% lower. ET is currently a Zacks Rank #3 (Hold).

Digging into valuation, ET currently has a Forward P/E ratio of 22.5. This represents a premium compared to its industry's average Forward P/E of 7.17.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 233, putting it in the bottom 8% 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.

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


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