Back to top

Image: Bigstock

Energy Transfer LP (ET) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Energy Transfer LP (ET - Free Report) closed at $9.97 in the latest trading session, marking a +0.4% move from the prior day. This move lagged the S&P 500's daily gain of 0.84%. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, added 0.1%.

Prior to today's trading, shares of the energy-related services provider had gained 8.88% over the past month. This has lagged the Oils-Energy sector's gain of 9.56% and outpaced the S&P 500's loss of 4.03% in that time.

Investors will be hoping for strength from Energy Transfer LP as it approaches its next earnings release, which is expected to be February 16, 2022. On that day, Energy Transfer LP is projected to report earnings of $0.24 per share, which would represent year-over-year growth of 26.32%. Meanwhile, our latest consensus estimate is calling for revenue of $19.12 billion, up 90.6% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Energy Transfer LP. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.3% lower. Energy Transfer LP is currently sporting a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Energy Transfer LP has a Forward P/E ratio of 10.31 right now. For comparison, its industry has an average Forward P/E of 10.47, which means Energy Transfer LP is trading at a discount to the group.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Energy Transfer LP (ET) - free report >>

Published in