ET Should I Buy
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Energy Transfer LP (ET) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The stock is supported by strong hedge fund buying, favorable analyst ratings, and a positive long-term growth outlook in the natural gas sector. Despite recent financial performance challenges, the company's strategic positioning and infrastructure investments make it a compelling long-term opportunity.
The technical indicators show a mixed picture. The MACD is negative but contracting, RSI indicates the stock is oversold at 15.626, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near key support levels, suggesting limited downside risk.
Hedge funds are heavily buying, with a 19,964.53% increase in buying activity last quarter.
Analysts have issued favorable ratings, with recent price targets ranging from $20 to $23, indicating upside potential.
Energy Transfer is investing in natural gas infrastructure to meet rising demand, aligning with global energy trends.
News highlights strong market confidence and key partnerships in the natural gas sector.
Recent financials show a decline in net income (-13.89% YoY) and EPS (-13.79% YoY), with gross margin also dropping (-15.06% YoY).
The MACD and moving averages suggest bearish momentum in the short term.
In Q4 2025, revenue increased by 29.57% YoY to $25.32 billion, showcasing strong top-line growth. However, net income dropped by 13.89% YoY to $868 million, and EPS decreased by 13.79% to $0.25. Gross margin also declined to 17.43%, down 15.06% YoY. While revenue growth is promising, profitability metrics are under pressure.
Analysts are generally bullish on Energy Transfer LP. Truist initiated coverage with a Buy rating and a $23 price target, citing structural volume growth and improving balance sheet discipline. Raymond James added the stock to its Analyst Current Favorites list, highlighting its attractive outlook. Morgan Stanley and Jefferies raised their price targets to $21 and $20, respectively, though Jefferies maintains a Hold rating.
