Energy Transfer(ET) ZACKS·2025-05-19 17:50Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Energy Transfer LP (ET) is currently highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth investors [9] Group 2: Earnings Growth - Historical EPS growth for Energy Transfer LP is 1.2%, but projected EPS growth for this year is 11.9%, surpassing the industry average of 9.6% [4] - Double-digit earnings growth is preferred by growth investors, indicating strong prospects for stock price gains [3] Group 3: Asset Utilization - The asset utilization ratio (sales-to-total-assets ratio) for Energy Transfer LP is 0.66, indicating that the company generates $0.66 in sales for every dollar in assets, which is higher than the industry average of 0.56 [6] - The company is also expected to achieve sales growth of 18.1% this year, compared to the industry average of 5.8% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are crucial, and Energy Transfer LP has seen its current-year earnings estimates rise by 1.8% over the past month [7] - A strong correlation exists between earnings estimate revisions and near-term stock price movements, making this a significant factor for investors [7] Group 5: Investment Potential - Energy Transfer LP has earned a Growth Score of A and a Zacks Rank 2 due to positive earnings estimate revisions, suggesting it is a potential outperformer and a solid choice for growth investors [9]