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

Zacks Equity Research
Apogee Enterprises (APOG) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

In the latest trading session, Energy Transfer LP (ET) closed at $15.51, marking a +0.19% move from the previous day. The stock lagged the S&P 500's daily gain of 1.09%. Meanwhile, the Dow gained 0.84%, and the Nasdaq, a tech-heavy index, added 1.42%.

Coming into today, shares of the energy-related services provider had lost 0.13% in the past month. In that same time, the Oils-Energy sector gained 1.86%, while the S&P 500 gained 1.18%.

ET will be looking to display strength as it nears its next earnings release. On that day, ET is projected to report earnings of $0.34 per share, which would represent a year-over-year decline of 19.05%. Meanwhile, our latest consensus estimate is calling for revenue of $14.79 billion, up 24.45% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.37 per share and revenue of $61.33 billion. These totals would mark changes of +19.13% and +13.4%, respectively, from last year.

Any recent changes to analyst estimates for ET should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 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. Within the past 30 days, our consensus EPS projection has moved 0.21% lower. ET is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, ET is currently trading at a Forward P/E ratio of 11.29. Its industry sports an average Forward P/E of 12.47, so we one might conclude that ET is trading at a discount comparatively.

Investors should also note that ET has a PEG ratio of 0.46 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Production Pipeline - MLB stocks are, on average, holding a PEG ratio of 3.09 based on yesterday's closing prices.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 39% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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