Post by xray on Jun 4, 2023 14:50:33 GMT
richardsok ,
ET:
Zacks
Investors Heavily Search Energy Transfer LP (ET): Here is What You Need to Know
Zacks Equity Research
May 19, 2023
In this article:
ET
+2.22%
Energy Transfer LP (ET) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this energy-related services provider have returned +0.4%, compared to the Zacks S&P 500 composite's +1.2% change. During this period, the Zacks Oil and Gas - Production Pipeline - MLB industry, which Energy Transfer LP falls in, has lost 1%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Energy Transfer LP is expected to post earnings of $0.33 per share for the current quarter, representing a year-over-year change of -15.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.5%.
For the current fiscal year, the consensus earnings estimate of $1.34 points to a change of -5% from the prior year. Over the last 30 days, this estimate has changed -4.3%.
For the next fiscal year, the consensus earnings estimate of $1.35 indicates a change of +0.6% from what Energy Transfer LP is expected to report a year ago. Over the past month, the estimate has changed -0.7%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Energy Transfer LP is rated Zacks Rank #4 (Sell).
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Energy Transfer LP, the consensus sales estimate of $23.49 billion for the current quarter points to a year-over-year change of -9.5%. The $99.37 billion and $99.57 billion estimates for the current and next fiscal years indicate changes of +10.6% and +0.2%, respectively.
Last Reported Results and Surprise History
Energy Transfer LP reported revenues of $19 billion in the last reported quarter, representing a year-over-year change of -7.3%. EPS of $0.32 for the same period compares with $0.37 a year ago.
Compared to the Zacks Consensus Estimate of $23.94 billion, the reported revenues represent a surprise of -20.67%. The EPS surprise was -3.03%.
Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates just once over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Energy Transfer LP is graded A on this front, indicating that it is trading at a discount to its peers.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Energy Transfer LP. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
----------
OXY
Zacks
5 Energy Stocks: Values or Traps?
Tracey Ryniec
Thu, June 1, 2023, 4:49 PM EDT
OXY
+2.70%
(0:30) - Are Energy Stocks Good Value Investments Right Now?
(4:15) - Tracey’s Top Stock Picks: Creating a Strong Watchlist
(20:35) - Episode Roundup: SLB, NEX, EOG, OXY, XOM
Welcome to Episode #330 of the Value Investor Podcast. Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. It’s time to look at the energy stocks again. After being the best performing sector in the S&P 500 two years in a row, they are now the worst performing sector this year.
Crude and natural gas prices have sunk from last year’s highs after the Ukraine War spooked the market. Traders have abandoned the stocks again for the better performing semiconductors and AI stocks. But with Wall Street ignoring energy, the stocks are again cheap. But are they true values or traps? Difference Between a Value and a Trap Remember, there is a difference between value stocks and those that are value traps. The key is to look at earnings. Are the earnings expected to rise year-over-year? If so, then there might be a true value there. Investors are getting rising earnings on sale. A trap is when the earnings are on the decline.
5 Energy Stocks: Values or Traps?
-SLB
SLB, formerly known as Schlumberger, is a global oil services company. The services business is not as tied to the daily price movements of oil and natural gas. SLB shares have sunk in 2023, falling 19.3%. It’s gotten cheaper. SLB trades with a forward P/E of 14.7. It also has a PEG of 0.5. A PEG ratio under 1.0 indicates a company is both a value and has growth. Is SLB a value or a trap?
-NEX
NexTier Oilfield Solutions is a small cap services company, with a market cap of $1.8 billion. Shares of NexTier Oilfield Solutions have sunk in 2023. It’s down 14.2% year-to-date. And now it’s dirt cheap. NexTier Oilfield Solutions has a forward P/E of just 2.8. How much cheaper can NexTier Oilfield Services get?
-EOG
EOG Resources is one of the big independent oil and natural gas producers. Shares of EOG Resources are down 15.4% year-to-date but are not yet at the 2023 lows that were hit in March. Still, EOG Resources is cheap with a forward P/E of 9 and a PEG ratio of just 0.3. It has both value and growth. Analysts have had a tough time with earnings estimates this year as crude and natural gas prices have dropped. 4 estimates are up and 7 have been cut in the last 30 days. Is EOG Resources a value or a trap?
OXY
Occidental Petroleum is a large cap oil and natural gas producer who also is a big chemical producer. It’s been in the public eye the last few years as Berkshire Hathaway has taken a large position in the company. In 2023, Warren Buffett continued to add to his position. Shares of Occidental Petroleum have fallen 6.4% year-to-date but are up off the 2023 lows. Occidental Petroleum is cheap. It has a forward P/E of 11.4 and a PEG ratio of 0.5. Analysts are bearish on 2023, with 8 earnings estimates cut and only 1 estimate raised in the last 30 days. Is Buffett getting it right on Occidental Petroleum?
----------
Comment:
Basically all Oil securities have fallen, but the current OPEC decision after the meeting today on again cutting their oil production by 1m/day, could have a positive effect on all of them (+ others). Which ones will profit more than the others has to be done by careful analysis.
OXY is in the limelight currently because of Buffet buying and many investors appear to be following the trend. On Mar 09, 2023 a dividend of 0.18 was paid which was a $0.05 change from their normal $0.13. OXY is "pricey" and the normal small investor would not profit much with a current buy because of the number of shares vs price rise. If one had to invest, a buy into Buffets class B stock could be a better buy (IMHO). WARREN BUFFETT -Berkshire Owns About 25% of Occidental After Fresh Buys. Berkshire Hathaway bought 4.7 million shares in recent days and now owns 222 million shares of the energy company worth $13 billion.
Bottom Line: OXY is the better play if choosing between OXY and ET "but" on Monday morning we should expect some additional early morning buying should OPEC's announcement be negative in nature (decreasing oil production) and investors would now be buying the oil sector which has been out of favor for a while now. Most oil stocks "jumped" on Friday 2-4% in MktPrc's....
----------
Simply Wall St.
Here's What We Like About Occidental Petroleum's (NYSE:OXY) Upcoming Dividend
Simply Wall St
Sat, June 3, 2023, 8:27 AM EDT
In this article:
OXY
+2.70%
Berkshire Hathaway Buys About 4.66 Mln Additional Occidental Petroleum Shares - SEC Filing
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Occidental Petroleum Corporation (NYSE:OXY) is about to go ex-dividend in just 4 days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Meaning, you will need to purchase Occidental Petroleum's shares before the 8th of June to receive the dividend, which will be paid on the 14th of July.
The company's next dividend payment will be US$0.18 per share, on the back of last year when the company paid a total of US$0.72 to shareholders. Last year's total dividend payments show that Occidental Petroleum has a trailing yield of 1.2% on the current share price of $59.69. If you buy this business for its dividend, you should have an idea of whether Occidental Petroleum's dividend is reliable and sustainable. So we need to investigate whether Occidental Petroleum can afford its dividend, and if the dividend could grow.
View our latest analysis for Occidental Petroleum
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Occidental Petroleum has a low and conservative payout ratio of just 6.0% of its income after tax. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. It paid out 11% of its free cash flow as dividends last year, which is conservatively low.
It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
----------
Live Long and Prosper....
ET:
Zacks
Investors Heavily Search Energy Transfer LP (ET): Here is What You Need to Know
Zacks Equity Research
May 19, 2023
In this article:
ET
+2.22%
Energy Transfer LP (ET) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this energy-related services provider have returned +0.4%, compared to the Zacks S&P 500 composite's +1.2% change. During this period, the Zacks Oil and Gas - Production Pipeline - MLB industry, which Energy Transfer LP falls in, has lost 1%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Energy Transfer LP is expected to post earnings of $0.33 per share for the current quarter, representing a year-over-year change of -15.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.5%.
For the current fiscal year, the consensus earnings estimate of $1.34 points to a change of -5% from the prior year. Over the last 30 days, this estimate has changed -4.3%.
For the next fiscal year, the consensus earnings estimate of $1.35 indicates a change of +0.6% from what Energy Transfer LP is expected to report a year ago. Over the past month, the estimate has changed -0.7%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Energy Transfer LP is rated Zacks Rank #4 (Sell).
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Energy Transfer LP, the consensus sales estimate of $23.49 billion for the current quarter points to a year-over-year change of -9.5%. The $99.37 billion and $99.57 billion estimates for the current and next fiscal years indicate changes of +10.6% and +0.2%, respectively.
Last Reported Results and Surprise History
Energy Transfer LP reported revenues of $19 billion in the last reported quarter, representing a year-over-year change of -7.3%. EPS of $0.32 for the same period compares with $0.37 a year ago.
Compared to the Zacks Consensus Estimate of $23.94 billion, the reported revenues represent a surprise of -20.67%. The EPS surprise was -3.03%.
Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates just once over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Energy Transfer LP is graded A on this front, indicating that it is trading at a discount to its peers.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Energy Transfer LP. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
----------
OXY
Zacks
5 Energy Stocks: Values or Traps?
Tracey Ryniec
Thu, June 1, 2023, 4:49 PM EDT
OXY
+2.70%
(0:30) - Are Energy Stocks Good Value Investments Right Now?
(4:15) - Tracey’s Top Stock Picks: Creating a Strong Watchlist
(20:35) - Episode Roundup: SLB, NEX, EOG, OXY, XOM
Welcome to Episode #330 of the Value Investor Podcast. Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. It’s time to look at the energy stocks again. After being the best performing sector in the S&P 500 two years in a row, they are now the worst performing sector this year.
Crude and natural gas prices have sunk from last year’s highs after the Ukraine War spooked the market. Traders have abandoned the stocks again for the better performing semiconductors and AI stocks. But with Wall Street ignoring energy, the stocks are again cheap. But are they true values or traps? Difference Between a Value and a Trap Remember, there is a difference between value stocks and those that are value traps. The key is to look at earnings. Are the earnings expected to rise year-over-year? If so, then there might be a true value there. Investors are getting rising earnings on sale. A trap is when the earnings are on the decline.
5 Energy Stocks: Values or Traps?
-SLB
SLB, formerly known as Schlumberger, is a global oil services company. The services business is not as tied to the daily price movements of oil and natural gas. SLB shares have sunk in 2023, falling 19.3%. It’s gotten cheaper. SLB trades with a forward P/E of 14.7. It also has a PEG of 0.5. A PEG ratio under 1.0 indicates a company is both a value and has growth. Is SLB a value or a trap?
-NEX
NexTier Oilfield Solutions is a small cap services company, with a market cap of $1.8 billion. Shares of NexTier Oilfield Solutions have sunk in 2023. It’s down 14.2% year-to-date. And now it’s dirt cheap. NexTier Oilfield Solutions has a forward P/E of just 2.8. How much cheaper can NexTier Oilfield Services get?
-EOG
EOG Resources is one of the big independent oil and natural gas producers. Shares of EOG Resources are down 15.4% year-to-date but are not yet at the 2023 lows that were hit in March. Still, EOG Resources is cheap with a forward P/E of 9 and a PEG ratio of just 0.3. It has both value and growth. Analysts have had a tough time with earnings estimates this year as crude and natural gas prices have dropped. 4 estimates are up and 7 have been cut in the last 30 days. Is EOG Resources a value or a trap?
OXY
Occidental Petroleum is a large cap oil and natural gas producer who also is a big chemical producer. It’s been in the public eye the last few years as Berkshire Hathaway has taken a large position in the company. In 2023, Warren Buffett continued to add to his position. Shares of Occidental Petroleum have fallen 6.4% year-to-date but are up off the 2023 lows. Occidental Petroleum is cheap. It has a forward P/E of 11.4 and a PEG ratio of 0.5. Analysts are bearish on 2023, with 8 earnings estimates cut and only 1 estimate raised in the last 30 days. Is Buffett getting it right on Occidental Petroleum?
----------
Comment:
Basically all Oil securities have fallen, but the current OPEC decision after the meeting today on again cutting their oil production by 1m/day, could have a positive effect on all of them (+ others). Which ones will profit more than the others has to be done by careful analysis.
OXY is in the limelight currently because of Buffet buying and many investors appear to be following the trend. On Mar 09, 2023 a dividend of 0.18 was paid which was a $0.05 change from their normal $0.13. OXY is "pricey" and the normal small investor would not profit much with a current buy because of the number of shares vs price rise. If one had to invest, a buy into Buffets class B stock could be a better buy (IMHO). WARREN BUFFETT -Berkshire Owns About 25% of Occidental After Fresh Buys. Berkshire Hathaway bought 4.7 million shares in recent days and now owns 222 million shares of the energy company worth $13 billion.
Bottom Line: OXY is the better play if choosing between OXY and ET "but" on Monday morning we should expect some additional early morning buying should OPEC's announcement be negative in nature (decreasing oil production) and investors would now be buying the oil sector which has been out of favor for a while now. Most oil stocks "jumped" on Friday 2-4% in MktPrc's....
----------
Simply Wall St.
Here's What We Like About Occidental Petroleum's (NYSE:OXY) Upcoming Dividend
Simply Wall St
Sat, June 3, 2023, 8:27 AM EDT
In this article:
OXY
+2.70%
Berkshire Hathaway Buys About 4.66 Mln Additional Occidental Petroleum Shares - SEC Filing
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Occidental Petroleum Corporation (NYSE:OXY) is about to go ex-dividend in just 4 days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Meaning, you will need to purchase Occidental Petroleum's shares before the 8th of June to receive the dividend, which will be paid on the 14th of July.
The company's next dividend payment will be US$0.18 per share, on the back of last year when the company paid a total of US$0.72 to shareholders. Last year's total dividend payments show that Occidental Petroleum has a trailing yield of 1.2% on the current share price of $59.69. If you buy this business for its dividend, you should have an idea of whether Occidental Petroleum's dividend is reliable and sustainable. So we need to investigate whether Occidental Petroleum can afford its dividend, and if the dividend could grow.
View our latest analysis for Occidental Petroleum
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Occidental Petroleum has a low and conservative payout ratio of just 6.0% of its income after tax. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. It paid out 11% of its free cash flow as dividends last year, which is conservatively low.
It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
----------
Live Long and Prosper....
