Category: ET

ET – Here is Why Growth Investors Should Buy Energy Transfer LP (ET) Now

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market’s attention and produce exceptional returns. However, it isn’t easy to find a great growth stock.

That’s because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company’s real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Energy Transfer LP (ET Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

While there are numerous reasons why the stock of this energy-related services provider is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings Growth

Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Energy Transfer LP is 3.1%, investors should actually focus on the projected growth. The company’s EPS is expected to grow 988.9% this year, crushing the industry average, which calls for EPS growth of 14.9%.

Impressive Asset Utilization Ratio

Asset utilization ratio — also known as sales-to-total-assets (S/TA) ratio — is often overlooked by investors, but it is an important indicator in growth investing. This metric shows how efficiently a firm is utilizing its assets to generate sales.

Right now, Energy Transfer LP has an S/TA ratio of 0.46, which means that the company gets $0.46 in sales for each dollar in assets. Comparing this to the industry average of 0.33, it can be said that the company is more efficient.

In addition to efficiency in generating sales, sales growth plays an important role. And Energy Transfer LP looks attractive from a sales growth perspective as well. The company’s sales are expected to grow 59.1% this year versus the industry average of 15.5%.

Promising Earnings Estimate Revisions

Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Energy Transfer LP. The Zacks Consensus Estimate for the current year has surged 0.2% over the past month.

Bottom Line

Energy Transfer LP has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Energy Transfer LP well for outperformance, so growth investors may want to bet on it.

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

In the latest trading session, Energy Transfer LP (ET Free Report) closed at $10.71, marking a +0.09% move from the previous day. This move lagged the S&P 500’s daily gain of 0.75%.

Heading into today, shares of the energy-related services provider had gained 2% over the past month, lagging the Oils-Energy sector’s gain of 2.47% and the S&P 500’s gain of 2.91% in that time.

ET will be looking to display strength as it nears its next earnings release. On that day, ET is projected to report earnings of $0.24 per share, which would represent year-over-year growth of 84.62%. Meanwhile, our latest consensus estimate is calling for revenue of $15.03 billion, up 104.85% from the prior-year quarter.

ET’s full-year Zacks Consensus Estimates are calling for earnings of $2.13 per share and revenue of $61.99 billion. These results would represent year-over-year changes of +987.5% and +59.13%, respectively.

Investors should also note any recent changes to analyst estimates for ET. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

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.

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 has moved 6.41% higher. ET is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, ET is holding a Forward P/E ratio of 5.03. This represents a discount compared to its industry’s average Forward P/E of 10.87.

The Oil and Gas – Production Pipeline – MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

ET – Is Energy Transfer LP (ET) a Great Value Stock Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the “Value” category. When paired with a high Zacks Rank, “A” grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Energy Transfer LP (ET Free Report) . ET is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.58 right now. For comparison, its industry sports an average P/E of 9.83. Over the past 52 weeks, ET’s Forward P/E has been as high as 11.13 and as low as 4.50, with a median of 7.27.

We should also highlight that ET has a P/B ratio of 0.86. The P/B is a method of comparing a stock’s market value to its book value, which is defined as total assets minus total liabilities. This company’s current P/B looks solid when compared to its industry’s average P/B of 1.37. Within the past 52 weeks, ET’s P/B has been as high as 0.90 and as low as 0.44, with a median of 0.57.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ET has a P/S ratio of 0.65. This compares to its industry’s average P/S of 1.83.

Finally, our model also underscores that ET has a P/CF ratio of 4.08. This metric focuses on a firm’s operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company’s current P/CF looks solid when compared to its industry’s average P/CF of 6.40. Over the past 52 weeks, ET’s P/CF has been as high as 7.64 and as low as 2.87, with a median of 4.20.

Value investors will likely look at more than just these metrics, but the above data helps show that Energy Transfer LP is likely undervalued currently. And when considering the strength of its earnings outlook, ET sticks out at as one of the market’s strongest value stocks.

ET – Energy Transfer LP (ET) Stock Moves -1.03%: What You Should Know

In the latest trading session, Energy Transfer LP (ET Free Report) closed at $10.56, marking a -1.03% move from the previous day. This change was narrower than the S&P 500’s daily loss of 1.31%.

Prior to today’s trading, shares of the energy-related services provider had gained 6.49% over the past month. This has outpaced the Oils-Energy sector’s gain of 0.67% and the S&P 500’s gain of 1.56% in that time.

Wall Street will be looking for positivity from ET as it approaches its next earnings report date. The company is expected to report EPS of $0.24, up 84.62% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.03 billion, up 104.85% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.13 per share and revenue of $61.91 billion. These totals would mark changes of +987.5% and +58.92%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for ET. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 17.28% higher. ET currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, ET is holding a Forward P/E ratio of 5.02. For comparison, its industry has an average Forward P/E of 11.06, which means ET 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 122, which puts it in the top 49% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow ET in the coming trading sessions, be sure to utilize Zacks.com.

ET – Should Value Investors Buy Energy Transfer LP (ET) Stock?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the “Value” category. When paired with a high Zacks Rank, “A” grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Energy Transfer LP (ET Free Report) . ET is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 6.38, while its industry has an average P/E of 10.19. ET’s Forward P/E has been as high as 11.83 and as low as 4.50, with a median of 7.42, all within the past year.

Investors should also recognize that ET has a P/B ratio of 0.86. The P/B is a method of comparing a stock’s market value to its book value, which is defined as total assets minus total liabilities. ET’s current P/B looks attractive when compared to its industry’s average P/B of 1.41. ET’s P/B has been as high as 0.86 and as low as 0.44, with a median of 0.57, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock’s price with the company’s revenue. This is a prefered metric because revenue can’t really be manipulated, so sales are often a truer performance indicator. ET has a P/S ratio of 0.66. This compares to its industry’s average P/S of 1.88.

Finally, investors will want to recognize that ET has a P/CF ratio of 4.13. This figure highlights a company’s operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock’s P/CF looks attractive against its industry’s average P/CF of 6.64. Over the past year, ET’s P/CF has been as high as 7.98 and as low as 2.92, with a median of 4.28.

Value investors will likely look at more than just these metrics, but the above data helps show that Energy Transfer LP is likely undervalued currently. And when considering the strength of its earnings outlook, ET sticks out at as one of the market’s strongest value stocks.