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Energy Transfer LP (ET) Outpaces Stock Market Gains: What You Should Know

Energy Transfer LP (ET) closed at $14.31 in the latest trading session, marking a +1.63% move from the prior day. This change outpaced the S&P 500's 0.54% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.95%.

Coming into today, shares of the energy-related services provider had lost 5.69% in the past month. In that same time, the Oils-Energy sector lost 7.87%, while the S&P 500 lost 4.97%.

Wall Street will be looking for positivity from ET as it approaches its next earnings report date. This is expected to be February 20, 2019. The company is expected to report EPS of $0.46, up 12.2% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.04 billion, up 22.6% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.51 per share and revenue of $56.74 billion. These totals would mark changes of +24.79% and +38.03%, respectively, from last year.

Investors should also note any 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 12.01% lower within the past month. ET is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that ET has a Forward P/E ratio of 9.31 right now. Its industry sports an average Forward P/E of 13.49, so we one might conclude that ET is trading at a discount comparatively.

It is also worth noting that ET currently has a PEG ratio of 0.29. 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 1.71 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 91, putting it in the top 35% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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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