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

In the latest trading session, Energy Transfer LP (ET) closed at $8.15, marking a -1.45% move from the previous day.

This story originally appeared on Zacks

In the latest trading session, Energy Transfer LP (ET) closed at $8.15, marking a -1.45% move from the previous day. This move lagged the S&P 500's daily gain of 0.14%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.34%.

- Zacks

Prior to today's trading, shares of the energy-related services provider had lost 1.78% over the past month. This has lagged the Oils-Energy sector's gain of 2.6% and the S&P 500's gain of 4.32% in that time.

Investors will be hoping for strength from Energy Transfer LP as it approaches its next earnings release. In that report, analysts expect Energy Transfer LP to post earnings of $0.24 per share. This would mark year-over-year growth of 26.32%. Meanwhile, our latest consensus estimate is calling for revenue of $18.94 billion, up 88.72% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.85 per share and revenue of $68.32 billion, which would represent changes of +870.83% and +75.39%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Energy Transfer LP. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Energy Transfer LP is holding a Zacks Rank of #5 (Strong Sell) right now.

Valuation is also important, so investors should note that Energy Transfer LP has a Forward P/E ratio of 4.48 right now. For comparison, its industry has an average Forward P/E of 9.27, 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 group has a Zacks Industry Rank of 243, putting it in the bottom 5% 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.

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