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Energy Transfer Stock Price Has Risen 57.7% Since January. Should You Buy It?

Updated: 28 Oct 2021

Energy Transfer LP Unit (NYSE: ET) stock price has risen 57.69% since January but has fallen from its June highs when trading at over $11. The stock bottomed in late September and has since risen.

Investors looking for buying opportunities in the energy sector may find Energy Transfer an exciting opportunity given that it is rated highly by analysts due to its solid fundamentals.

The energy company reported Q2 revenues of $15.1 billion, representing a 105.7% increase to last year’s figure primarily driven by surging natural gas and crude oil prices.

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Energy Transfer operates various pipelines and sells natural gas, which has benefited from the surging crude oil prices as demand outstrips supply. As a result, the company’s pretax profits surged to $2.62 billion compared to Q2 2020’2 $2.44 billion.

The company’s key investment ratios, like its P/E ratio, are trading way below its five-year averages, indicating that it is currently undervalued, which is great news for long-term investors in the energy sector.

Furthermore, the energy firm pays a forward dividend yield of 6.3%, which made analysts at UBS add it to their list of the top 20 dividend stocks due to its excellent income prospects.

For short-term traders keen to profit from short-term price moves, Energy Transfer shares just bounced off a critical resistance level.

The shares seem to be headed lower but are currently supported by the 50-day exponential moving average. A break below the EMW would indicate a short-term bearish trend over the coming days.

However, I am not looking for short positions. Instead, I am waiting for the shares to fall to the bottom of the trading range outlined below once they break below the EMA line. I would also look for buying opportunities if the 50-day EMa holds and the shares break back above the resistance level outlined on the daily chart below.

*This is not investment advice. Always do your due diligence before making investment decisions.

Energy Transfer stock price.

Tradingview chart of Energy Transfer stock price 28-10-2021

Energy Transfer stock price has risen 57.69% since January, driven by rising prices. Should you buy it?

Should you invest in Energy Transfer shares?

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