Energy Transfer LP (ET) reachead $16 at the closing of the latest trading day, reflecting a +0.82% change compared to its last close.
Zacks.com users have recently been watching Energy Transfer LP (ET) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Historically, rapid growth has led to ongoing concerns regarding excessive debt and poor distribution coverage among some analysts. Over the last year, ET has outperformed the S&P 500 while crude oil has declined 21.5%, suggesting investor confidence. Caution demands investors revisit the distribution cut in late October 2020.
Electricity demand could surge over the coming years, powered by AI data centers. Natural gas demand will probably spike as it helps fuel AI's growth.
Energy Transfer reported yet another strong quarter. While the underlying financials have improved a lot, the share price has remained relatively flat. This in combination with very bullish signals from Q2 data points has, in my opinion, rendered the FWD EV/EBITDA of 8.25x multiple even more attractive.
Energy Transfer offers an 8% yielding payout that should rise by 3% to 5% per year. Delek Logistics currently has a yield in the double digits.
Energy Transfer's deleveraging efforts have successfully reduced leverage ratios, enhancing financial stability and opening the door for potential unit buybacks. ET offers a highly attractive dividend yield of nearly 8%, with strong coverage and sustainable growth, making distribution cuts unlikely. ET is fairly valued, trading in line with its 5-year average EV/EBITDA ratio, with potential for long-term rerating if current growth continues.
Overall, insider transactions are currently dominated by selling for good reasons, such as the elevated valuation of the overall equity market. Recent insider transactions for Energy Transfer LP show rare and significant insider buying. These activities suggest a favorable return/risk curve from the insiders.
ET is poised for growth with its expanding operation in the United States and well-balanced asset mix.
Last Friday, Federal Reserve Chair Jerome Powell provided the most unambiguous indication yet that the central bank is preparing to lower historically high interest rates in September. While he didn't specify the exact amount of the rate cut, most experts anticipate a quarter-point reduction.
Energy Transfer LP (ET) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
If you are looking for high yields, you have probably heard of Energy Transfer and Enterprise Products Partners. Energy Transfer has a track record of letting income-focused unitholders down and putting management's interests first.