Energy Transfer LP (ET) closed at $14.53 in the latest trading session, marking a +1.96% move from the prior day. This move outpaced the S&P 500's daily gain of 1.29%. At the same time, the Dow added 1.49%, and the tech-heavy Nasdaq gained 1.46%.
Heading into today, shares of the energy-related services provider had lost 3.13% over the past month, lagging the Oils-Energy sector's gain of 1.59% and the S&P 500's gain of 4.57% in that time.
ET will be looking to display strength as it nears its nex t earnings release, which is expected to be February 20, 2019. On that day, ET is projected to report earnings of $0.43 per share, which would represent year-over-year growth of 4.88%. Meanwhile, our latest consensus estimate is calling for revenue of $14.85 billion, up 29.63% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for ET. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate has moved 8.37% lower within the past month. ET is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, ET is holding a Forward P/E ratio of 11.32. This represents a discount compared to its industry's average Forward P/E of 12.13.
We can also see that ET currently has a PEG ratio of 0.46. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Production Pipeline - MLB stocks are, on average, holding a PEG ratio of 2.22 based on yesterday's closing prices.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 23% 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.
To follow ET in the coming trading sessions, be sure to utilize Zacks.com.
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