Heavy Early Morning Activity On Energy Transfer Equity (ETE)

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.

Trade-Ideas LLC identified Energy Transfer Equity ( ETE) as a pre-market mover with heavy volume 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 $81.6 million.
  • ETE traded 135,653 shares today in the pre-market hours as of 8:16 AM, representing 11.8% of its average daily volume.

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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 stock currently has a dividend yield of 2.8%. ETE has a PE ratio of 51. Currently there are 10 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 1.2 million shares per day over the past 30 days. Energy Transfer Equity has a market cap of $37.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.28 and a short float of 1.9% with 6.45 days to cover. Shares are up 21.7% year-to-date as of the close of trading on Thursday.

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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 impressive record of earnings per share growth, compelling growth in net income, notable return on equity and solid stock price performance. We feel its 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:
  • ENERGY TRANSFER EQUITY LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ENERGY TRANSFER EQUITY LP increased its bottom line by earning $1.11 versus $0.31 in the prior year. This year, the market expects an improvement in earnings ($2.23 versus $1.11).
  • 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 69.0% when compared to the same quarter one year prior, rising from $168.00 million to $284.00 million.
  • 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.
  • Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 29.42% 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.
  • Despite the weak revenue results, ETE has outperformed against the industry average of 38.7%. Since the same quarter one year prior, revenues fell by 23.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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