ET Should I Buy
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ET
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Energy Transfer LP (ET) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock offers a high dividend yield of 9.2%, stable cash flows from its midstream business, and long-term growth potential driven by natural gas demand. Despite short-term technical weakness, the long-term fundamentals and positive catalysts outweigh the risks.
The technical indicators show short-term bearishness. The MACD is below 0 and negatively contracting, RSI indicates oversold conditions at 15.626, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support levels (Pivot: 17.012, S1: 16.569). However, oversold RSI suggests potential for a rebound.
Hedge funds are significantly increasing their positions in ET, with a 19964.53% increase in buying over the last quarter.
Strong dividend yield of 9.2% with plans for annual growth of 3%-5% by
Stable cash flows supported by long-term contracts and a diversified midstream business.
Analysts maintain an 'Outperform' rating with a price target range of $19-$22, indicating upside potential.
Recent financial performance shows a decline in revenue (-3.94% YoY), net income (-13.99% YoY), and EPS (-12.50% YoY) in Q3
Short-term bearish technical indicators and a potential -5.73% decline in the next month based on candlestick pattern analysis.
Lack of recent congress trading data or significant insider activity.
In Q3 2025, Energy Transfer's revenue dropped by 3.94% YoY to $19.95 billion, net income fell by 13.99% YoY to $959 million, and EPS decreased by 12.50% YoY to $0.28. However, gross margin improved by 7.26% YoY to 19.81%, indicating operational efficiency.
Analysts are generally positive on ET, with RBC Capital and Scotiabank maintaining 'Outperform' ratings and price targets of $21-$22. However, Morgan Stanley downgraded the stock to 'Equal Weight' with a $19 price target, citing a lack of near-term catalysts for re-rating.
