Strong And Under The Radar Today: Energy Transfer Partners (ETP)

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 Energy Transfer Partners ( ETP) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Energy Transfer Partners as such a stock due to the following factors:

  • ETP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $107.3 million.
  • ETP is making at least a new 3-day high.
  • ETP has a PE ratio of 290.0.
  • ETP is mentioned 1.87 times per day on StockTwits.
  • ETP has not yet been mentioned on StockTwits today.
  • ETP is currently in the upper 20% of its 1-year range.
  • ETP is in the upper 35% of its 20-day range.
  • ETP is in the upper 45% of its 5-day range.
  • ETP is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on ETP:

Energy Transfer Partners, L.P. is engaged in the natural gas midstream, and intrastate transportation and storage businesses in the United States. The stock currently has a dividend yield of 6.6%. ETP has a PE ratio of 290.0. Currently there are 8 analysts that rate Energy Transfer Partners a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Energy Transfer Partners has been 1.3 million shares per day over the past 30 days. Energy Transfer has a market cap of $18.9 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.01 and a short float of 1.8% with 4.87 days to cover. Shares are up 1.4% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Energy Transfer Partners as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in net income, growth in earnings per share and increase in stock price during the past year. 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:
  • The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 12.8%. Growth in the company's revenue appears to have helped boost the 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 47.2% when compared to the same quarter one year prior, rising from $320.00 million to $471.00 million.
  • Net operating cash flow has slightly increased to $891.00 million or 9.86% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.22%.
  • ENERGY TRANSFER PARTNERS -LP reported significant earnings per share improvement 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 PARTNERS -LP swung to a loss, reporting -$0.24 versus $5.76 in the prior year. This year, the market expects an improvement in earnings ($2.92 versus -$0.24).
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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