Energy Transfer Is Likely To Lag The Market (Archive)
Energy Transfer’s fair valuation and weakening technicals point to likely market underperformance ahead.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- Weak manufacturing PMIs data and a falling Leading Economic Index warn of an economic slowdown, which can curb volume growth for Energy Transfer.
- I believe ethane export restrictions to China are unlikely to materially impact Energy Transfer.
- My estimates reveal that the Lake Charles LNG export project has attractive economics with an almost 20% ROI profile. This is an upside risk to monitor.
- ET stock's valuation seems to be close to fair value, both vs peers and vs. its longer-term history.
- Technically, vs the SPX500, ET bulls are losing steam and starting to fail at a key resistance level.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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