ET Stock is Trading Above 50 and 200-Day SMA: Should You Add it Now?

Core Viewpoint - Energy Transfer LP (ET) is experiencing a bullish trend, trading above its 50-day and 200-day simple moving averages, and is well-positioned to capitalize on increasing demand for oil, natural gas, and natural gas liquids in the U.S. market [1][22]. Company Overview - Energy Transfer owns over 130,000 miles of pipelines across 44 states in the U.S. and is expanding operations through both organic growth and acquisitions, including a significant acquisition in the Permian Basin [7]. - The company generates nearly 90% of its revenues from fee-based contracts, which mitigates risks associated with commodity price fluctuations [8]. Financial Performance - ET's stock closed at $19.81 on January 27, with a 36.4% increase over the past year, outperforming the industry average of 30.1%, the S&P 500's growth of 22.8%, and the Zacks Oil-Energy sector's return of 6.8% [3]. - The Zacks Consensus Estimate for ET's 2025 earnings per unit and revenue indicates year-over-year growth of 6.1% and 12.76%, respectively [14]. Distribution and Insider Ownership - Energy Transfer has increased its quarterly cash distribution to 32.50 cents per common unit for Q4 2024, reflecting a 3.2% increase compared to Q4 2023, with a total of 12 distribution rate increases in the past five years [13]. - Insider ownership in ET stock is nearly 10%, which is higher than its industry peers, indicating confidence in the company's future prospects [12]. Valuation Metrics - ET's current trailing 12-month EV/EBITDA is 10.69X, compared to the industry average of 12.37X, suggesting that the company is undervalued relative to its peers [19].