Energy Transfer LP (ET) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Energy Transfer (ET 3.06%) has been on fire over the past year. Units of the master limited partnership (MLP) soared 42% last year.
ET has been a beneficiary of the the insatiable generative AI demand, as it permeates chip infrastructure layer, AI SaaS, data center REITs, and now the energy sector. Its 21.1% of the total Gas Pipeline Transportation industry market share has come into play, as it "received requests for connections to more than 90 power plants and data centers." This is significantly aided by ET's potential FY2024 beat on the adj EBITDA guidance growth at +6.9% YoY, based on the YTD outperformance at +14.8% YoY.
Midstream energy companies like Energy Transfer (ET) are poised to benefit from increased oil and gas volumes in 2025, despite potential price headwinds. ET's stable cash flows and recent acquisitions position it for substantial growth, outperforming competitors even with fluctuating energy prices. ET's valuation is attractive, trading at a discount to peers and offering strong growth prospects, making it a compelling 'Buy' in the current market.
Units of Energy Transfer (ET 0.26%) surged 42% in 2024, according to data provided by S&P Global Market Intelligence . That crushed the S&P 500 , which delivered a robust 23% return last year.
Investors are always on the search for stocks that pay generous dividends and have high yields. Unfortunately, that alone does not always make a great investment.
Energy Transfer LP has shown investors why AI has significantly lifted its thesis. The AI and data center boom is significantly boosting natural gas demand, and ET's extensive pipeline network is well-positioned to capitalize. ET still boasts a 6.7% yield and remains valued below EPD's valuation.
The latest trading day saw Energy Transfer LP (ET) settling at $19.73, representing a +1.23% change from its previous close.
I see Energy Transfer LP entering a consolidation phase due to macroeconomic uncertainties and also judging by its recent trading patterns. Treasury rates have climbed and pushed ET's yield spread relative to 10-year treasuries to its thinnest levels in 5 years. As such, I don't see too much room for the ET stock price/valuation to further expand until the rate narrative changes fundamentally.
Energy Transfer LP (ET) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Energy Transfer (ET -0.66%) is a popular investment, and a big factor is its monster yield. The master limited partnership's (MLP) distribution currently yields more than 6.5%.
President-elect Trump's policies will likely favor the American midstream industry, crucial for energy production and infrastructure, by reducing regulations and boosting domestic output. Energy Transfer stands to benefit significantly from these policy changes, making it a high-yielding, undervalued investment with strong growth potential. ET has already outperformed the S&P 500 significantly, reinforcing its 'Strong Buy' rating and promising both income and growth opportunities.