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

Zacks Equity Research
·3 min read

Energy Transfer LP (ET) closed the most recent trading day at $6.55, moving +0.46% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.77%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 1.49%.

Prior to today's trading, shares of the energy-related services provider had lost 7.39% over the past month. This has lagged the Oils-Energy sector's gain of 0.24% and the S&P 500's gain of 5.03% in that time.

Investors will be hoping for strength from ET as it approaches its next earnings release, which is expected to be August 5, 2020. In that report, analysts expect ET to post earnings of $0.25 per share. This would mark a year-over-year decline of 24.24%. Meanwhile, our latest consensus estimate is calling for revenue of $11.60 billion, down 16.43% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.91 per share and revenue of $49.54 billion. These totals would mark changes of -33.09% and -8.62%, respectively, from last year.

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Investors might also notice recent changes to analyst estimates for ET. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.27% higher within the past month. 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 7.16. This valuation marks a discount compared to its industry's average Forward P/E of 8.33.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 114, putting it in the top 45% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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Zacks Investment Research