Energy Transfer Equity (ETE) Reaches New Lifetime High Today

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 Equity ( ETE) 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 $165.6 million.
  • ETE has traded 78,943 shares today.
  • ETE is trading at a new lifetime high.

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More details on ETE:

Energy Transfer Equity, L.P., through its subsidiaries, provides diversified energy-related services in the Unites 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 2.7%. ETE has a PE ratio of 95.2. Currently there are 8 analysts that rate Energy Transfer Equity a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Energy Transfer Equity has been 2.2 million shares per day over the past 30 days. Energy Transfer Equity has a market cap of $32.8 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.39 and a short float of 2.5% with 4.43 days to cover. Shares are up 50.9% year-to-date as of the close of trading on Friday.

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 Equity as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, increase in net income, solid stock price performance and growth in earnings per share. 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 6.4%. Since the same quarter one year prior, revenues rose by 20.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ENERGY TRANSFER EQUITY LP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income increased by 24.5% when compared to the same quarter one year prior, going from $151.00 million to $188.00 million.
  • Powered by its strong earnings growth of 34.61% and other important driving factors, this stock has surged by 76.06% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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 has improved earnings per share by 34.6% 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 reported lower earnings of $0.31 versus $0.63 in the prior year. This year, the market expects an improvement in earnings ($1.29 versus $0.31).

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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