Markets

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

Energy Transfer LP (ET) closed at $6.59 in the latest trading session, marking a -0.45% move from the prior day. This change lagged the S&P 500's 0.34% loss on the day. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.73%.

Heading into today, shares of the energy-related services provider had lost 18.17% over the past month, lagging the Oils-Energy sector's loss of 1.56% and the S&P 500's gain of 5.71% in that time.

Wall Street will be looking for positivity from ET as it approaches its next earnings report date. In that report, analysts expect ET to post earnings of $0.27 per share. This would mark a year-over-year decline of 18.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.85 billion, down 14.63% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.58 per share and revenue of $50.70 billion, which would represent changes of -57.35% and -6.48%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ET. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 2.3% lower within the past month. ET is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, ET is currently trading at a Forward P/E ratio of 11.34. This valuation marks a premium compared to its industry's average Forward P/E of 8.49.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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