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Looking for a Growth Stock? 3 Reasons Why Energy Transfer LP (ET) is a Solid Choice
ZACKS· 2025-06-04 17:46
Core Viewpoint - Growth investors are attracted to stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Energy Transfer LP (ET) is recommended as a cutting-edge growth stock due to its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 1.2%, but projected EPS growth is expected to be 12.3% this year, surpassing the industry average of 9.3% [4] Group 2: Key Growth Metrics - The asset utilization 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] - Sales growth for Energy Transfer LP is projected at 18.1% this year, significantly exceeding the industry average of 5.8% [6] Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Energy Transfer LP have been revised upward, with the Zacks Consensus Estimate increasing by 2.6% over the past month [8] Group 4: Investment Potential - Energy Transfer LP has achieved a Growth Score of A and holds a Zacks Rank 2, indicating it is a potential outperformer and a solid choice for growth investors [10]
3 Reasons Why Growth Investors Shouldn't Overlook Energy Transfer LP (ET)
ZACKS· 2025-05-19 17:50
Core 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]