Why the Market Dipped But Energy Transfer LP (ET) Gained Today

In the latest trading session, Energy Transfer LP (ET) closed at $19.44, marking a +1.57% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.74%. On the other hand, the Dow registered a loss of 1.01%, and the technology-centric Nasdaq decreased by 2.38%.

Heading into today, shares of the energy-related services provider had gained 2.96% over the past month, lagging the Oils-Energy sector's gain of 10.19% and outpacing the S&P 500's loss of 4.99%.

The upcoming earnings release of Energy Transfer LP will be of great interest to investors. In that report, analysts expect Energy Transfer LP to post earnings of $0.37 per share. This would mark year-over-year growth of 2.78%. Meanwhile, the latest consensus estimate predicts the revenue to be $29.97 billion, indicating a 42.59% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.48 per share and a revenue of $120.25 billion, signifying shifts of +22.31% and +40.59%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Energy Transfer LP. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4.06% lower. Energy Transfer LP is currently a Zacks Rank #3 (Hold).

Investors should also note Energy Transfer LP's current valuation metrics, including its Forward P/E ratio of 12.97. This indicates a discount in contrast to its industry's Forward P/E of 13.42.

We can also see that ET currently has a PEG ratio of 1.07. 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. The Oil and Gas - Production Pipeline - MLB was holding an average PEG ratio of 1.55 at yesterday's closing price.

The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 198, placing it within the bottom 20% of over 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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