Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Energy Transfer Equity as such a stock due to the following factors:
- ETE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $86.9 million.
- ETE has traded 1.1 million shares today.
- ETE is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ETE with the Ticky from Trade-Ideas. See the FREE profile for ETE NOW at Trade-Ideas
More details on ETE:
Energy Transfer Equity, L.P., through its subsidiaries, provides diversified energy-related services in the United States. The company sells natural gas to electric utilities, independent power plants, local distribution companies, industrial end-users, and other marketing companies. The stock currently has a dividend yield of 3.8%. ETE has a PE ratio of 51.9. Currently there are 7 analysts that rate Energy Transfer Equity a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Energy Transfer Equity has been 785,000 shares per day over the past 30 days. Energy Transfer Equity has a market cap of $19.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.08 and a short float of 3.1% with 5.39 days to cover. Shares are up 54.5% year to date as of the close of trading on Monday.
rates Energy Transfer Equity as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- ETE's very impressive revenue growth greatly exceeded the industry average of 5.5%. Since the same quarter one year prior, revenues leaped by 493.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 331.4% when compared to the same quarter one year prior, rising from $35.00 million to $151.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, ENERGY TRANSFER EQUITY LP has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
- Compared to its closing price of one year ago, ETE's share price has jumped by 60.25%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- ENERGY TRANSFER EQUITY LP's earnings per share declined by 18.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ENERGY TRANSFER EQUITY LP increased its bottom line by earning $1.63 versus $1.40 in the prior year. This year, the market expects an improvement in earnings ($1.65 versus $1.63).
- You can view the full Energy Transfer Equity Ratings Report.