#2 - Energy Transfer (NYSE:ET)
If the rate of inflation does move higher, the energy sector may be the tell. First, lower interest rates reduce the opportunity cost of owning commodities like oil. Second, China just announced stimulative measures that may increase demand from one of the world’s largest oil consumers.
The likelihood of higher oil prices makes Energy Transfer LP (NYSE: ET) a name to consider. This is a midstream oil company, which means it’s a middleman of sorts between the drillers and the consumers.
The company owns and operates over 125,000 miles of pipeline spanning 41 states. It also signed a 20-year liquified natural gas (LNG) sale and purchase agreement with China related to its Lake Charles LNG project. And like many oil companies, Energy Transfer is working to develop renewable energy.
ET stock is up approximately 17% in 2024, slightly trailing the S&P 500. However, the stock pays a high-yield dividend of 7.93%. That complements a consensus price target of $19.14, which gives investors 18.6% upside.
About Energy Transfer
Energy Transfer LP provides energy-related services. The company owns and operates natural gas transportation pipeline, and natural gas storage facilities in Texas and Oklahoma; and approximately 20,090 miles of interstate natural gas pipeline. It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users.
Read More - Current Price
- $16.26
- Consensus Rating
- Buy
- Ratings Breakdown
- 6 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $20.00 (23.0% Upside)
