ET

The article explains Zacks' Earnings ESP (Expected Surprise Prediction) methodology for identifying stocks likely to beat quarterly earnings expectations. It highlights two energy stocks as examples: Enterprise Products Partners (EPD) with a +9.09% ESP and Buy rating ahead of October 29 earnings, and Energy Transfer LP (ET) with a +3.24% ESP and Hold rating before November 3 earnings. Both stocks show positive indicators for beating analyst expectations.

Energy Transfer LP (ET) fell 1.73% to $19.90, underperforming the S&P 500's 0.33% gain. Despite strong earnings expectations for Q3 2026 (EPS up 46.43% YoY, revenue up 78.41% YoY), the stock has gained 0% over the past month while its sector gained 5.67%. ET holds a Zacks Rank #3 (Hold) rating with a slight 0.52% downward revision in consensus EPS estimates over the past month.

Energy Transfer LP (ET) has gained 27.2% over the past year, trailing its industry's 64.6% rally. While the company benefits from a 140,000-mile pipeline network and nearly 90% fee-based revenues supporting stable cash flows, rising earnings estimates, and discounted valuation, concerns about high debt levels (57.52% debt-to-capital), weak ROE (11.55% vs. 14.22% industry average), and substantial capital requirements suggest investors should wait for a more attractive entry point. ET holds a Zacks Rank #3 (Hold) rating.