Can Energy Transfer Gain From BIS' Current Stance on Ethane Export?
This regulatory change significantly reduces trade barriers and uncertainty prevailing over the ethane expor t to China and opens a major global demand center for U.S. ethane. Energy Transfer, which already exports ethane through its Marcus Hook terminal and operates pipelines connected to export hubs, is well-equipped to meet this rising demand and benefit from increased throughput volumes and export margins.
The company operates more than 140,000 miles of pipelines and has a strategic footprint across key producing regions such as the Permian, Eagle Ford and Marcellus. This robust infrastructure enables efficient transportation and export of hydrocarbons, particularly ethane, which is vital for petrochemical production.
The new regulatory development enhances Energy Transfer's competitiveness in the global ethane market, supporting higher utilization rates across its NGL infrastructure. This reinforces Energy Transfer's strategic vision of expanding international energy partnerships while capitalizing on its cost-advantaged U.S. supply position.
How the Removal of the License Requirement Impacts Other Ethane Exporters
This decision of BIS to revoke the licensing requirement can boost the prospects of other ethane exporters to China. Enterprise Products Partners EPD, which exports a large volume of ethane to China, will benefit and continue to export as BIS rescinded licensing requirements. Phillips 66 PSX has a significant presence in the global ethane market and China is a key destination for the U.S. ethane exports. PSX too will benefit from BIS' decision.
ET Stock's Price Performance
Units of ET have risen 3.9% in the past three months compared with the Zacks Oil and Gas - Production Pipeline - MLB industry's growth of 2.8%.
Image Source: Zacks Investment Research
ET's Earnings Estimates
The Zacks Consensus Estimate for Energy Transfer's 2025 earnings per unit ('EPU') indicates a decline of 1.33% in the past 60 days, while the same for 2026 EPU indicates an increase of 2.56% in the same time period.
Image Source: Zacks Investment Research
ET's Units Are Trading at a Discount
Energy Transfer's units are somewhat inexpensive relative to the industry. ET's current trailing 12-month Enterprise Value/Earnings before Interest, Tax, Depreciation and Amortization (EV/EBITDA) TTM is 10.16X compared with the industry average of 11.54X. This indicates that the firm is presently undervalued compared with its industry.
ET's Zacks Rank
Energy Transfer currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity.
Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.
See Stocks Now >>
Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report
Phillips 66 (PSX): Free Stock Analysis Report
Energy Transfer LP (ET): Free Stock Analysis Report
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
2 hours ago
- Globe and Mail
Better Artificial Intelligence Stock: BigBear.ai vs. Nvidia
Key Points has become an AI investor darling over the past few years. Nvidia is the leading artificial intelligence semiconductor company. There's no substitute for high revenue growth and profitability -- and Nvidia has both. 10 stocks we like better than Nvidia › Many investors are focused on artificial intelligence stocks these days, which can be a smart play as AI transforms many industries. But it's starting to seem like any AI stock is a winner in the market right now, which means some investors may not be doing their due diligence when evaluating companies. With that in mind, two AI companies with surging share prices right now are Nvidia (NASDAQ: NVDA) and (NYSE: BBAI), and it may be worth taking a closer look at both to see which one looks like the better AI stock to buy right now. What's happening with Nvidia Nvidia gets top billing in this matchup because the company has experienced monster growth over the past few years as companies clamor for its artificial intelligence semiconductors. An estimated 70% to 95% of data centers utilize Nvidia's AI processors, and there seems to be no slowing down for the company's growth. For example, Nvidia's total sales soared 114% in fiscal 2025 to $130.5 billion, and its earnings skyrocketed 147% to $2.94 per share. This growth has been fueled by the company's data center segment, which experienced a 142% revenue surge to $115 billion last year. The impressive earnings and revenue growth have resulted in Nvidia's stock surging 57% over the past year. That's pushed the company's valuation higher, and Nvidia's shares currently have a price-to-earnings multiple of about 56. That's not cheap, but it's still lower than the average P/E ratio of 64 in the semiconductor industry right now. What's more, Nvidia could continue to benefit from AI investments for many more years to come. Nvidia CEO Jensen Huang believes AI will fuel $2 trillion in data center spending over the next several years. While Nvidia's growth isn't guaranteed, many tech giants have already committed to spending hundreds of billions of dollars to expand their AI data centers over the next few years. That's creating an ongoing opportunity for Nvidia to continue increasing its sales. What's happening with is an AI data analytics company that helps companies and the U.S. government sort through their data to make decisions. AI analytics is a burgeoning AI trend, and it has propelled the stock of similar companies, like Palantir, into the stratosphere. stock, for its part, has jumped 323% over the past year. But despite its impressive gains, there are some significant concerns I have with including its lack of strong revenue growth. sales increased just 5% in Q1 to $34.8 million, and management's outlook for the full year is for $160 million to $180 million -- an increase of just 7.5% at the midpoint. These are fairly unimpressive sales figures for a small AI company that's trying to tap into an expanding artificial intelligence analytics market. One of the company's problems is that 52% of its revenue comes from just four customers. That's a high concentration of sales from just a handful of customers, and it means that if one or two leave, could be in trouble. And then there's the company's lack of earnings. reported a loss of $1.10 per share last year and continued that trend with a loss of $0.25 per share in Q1. While many small start-ups often aren't profitable, it's problematic that the company's lack of earnings comes in addition to unimpressive sales growth. Meanwhile, stock has a price-to-sales ratio of 11, which is substantially higher than the average P/S multiple of 3 for the S&P 500 and means that investors are paying a premium for it right now. Verdict: Nvidia is the hands-down winner Nvidia's stock isn't cheap, and there are always risks with investing in AI stocks that have already experienced astronomical growth. But the company is a hands-down better investment than because it's massively profitable, continually expanding its revenue, and outpaces its rivals in the AI semiconductor market. Meanwhile, stock is overvalued, its revenue growth is unimpressive, and the company isn't profitable. This makes Nvidia the no-brainer in this matchup and one of the best AI stocks to buy and hold for the long term. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025
Globe and Mail
3 hours ago
- Globe and Mail
Amazon's Earnings: What Comes Next and How to Play It
Shares of tech giant Inc. (NASDAQ: AMZN) finished Thursday's session up nearly 2%, only to tumble more than 6% in after-hours trading following the company's Q2 earnings release. This sharp reversal underlines just how high expectations had gotten after the 40% rally from April's low. The stock's multi-month move meant anything less than a near-perfect report risked triggering a wave of profit-taking, and that appears to be exactly what's happening already. As we'll see below, however, this is also creating a couple of interesting plays for investors to consider depending on their belief in Amazon's potential over the long run, and their near-term appetite for risk. Let's jump in and take a look. The Report Looked Good, But It Had to Be Great At first glance, Amazon seemed to deliver. The company's earnings per share came in more than 25% above expectations, while revenue was up 13.3% year-over-year. Both metrics landed hot and were well above analyst expectations, adding to Amazon's impressive track record of delivering strong headline numbers quarter on quarter. But investors weren't satisfied based on the after-hours price action. As anticipated earlier in the week, any sign of weakness in last night's report could send the bulls running and the bears raging. And Amazon's weaker-than-expected guidance for operating income and some free cash flow concerns seem to have done just that. The range shared by management on the former was notably conservative, while the latter figure is now at its lowest in two years. In that context, it's perhaps not all that hard to see what investor sentiment would swing from risk-on to risk-off so quickly. It remains to be seen how long this switch will last, but in our view, there's little to be worried about regarding Amazon's long-term potential. What the Market Might Be Missing While the overnight sell-off might feel sharp, it's also arguably overdone. This was still an impressive report for Amazon, with revenue growth accelerating across the board and profitability improving at the same time. Overall growth remains strong despite ongoing infrastructure investments and competitive pricing pressures. The bears will point to growing concerns around the company's ability to stay in the lead group of the artificial intelligence (AI) arms race, but CEO Andy Jassy was not overly concerned. He spoke about this on the post-earnings conference call, saying, "I don't believe that we will have fully resolved the capacity we need for the amount of demand that we have in a couple of quarters. I think it will take several quarters, but I do expect that it's going to get better each quarter". Taken in total, there's a strong case to be made that Amazon is still in the early innings of its next growth phase, and Thursday's after-hours drop is more about positioning than fundamentals. 2 Ways to Play It For those of us on the sidelines, what kind of plays should we be looking for? Option one might be to sit back and let the correction play out. A move down to around the $220 level would take the stock back to a key area of support, and, given how one-directional the recent rally has been, would actually be quite healthy. If that $220 level were to hold, and or if we were to see a fresh bullish crossover in the MACD, it would likely mark the start of the next leg higher. Waiting for confirmation here gives you better risk/reward and protects against a deeper pullback. The other option is to start accumulating right away. This argument rests on the idea that Amazon's core thesis remains intact and the bears' concerns are already, or at least close to being, priced in after last night's drop. For big-time believers and long-term investors, this dip could be a gift - especially considering the company's strength across multiple verticals and its growing strength in high-margin, AI-driven businesses. Remember, multiple firms have been reiterating their Buy and Overweight ratings all through 2025, and even as recently as this week. The most recent price target from the team over at UBS Group sees the stock trading north of $270, a move that points to additional upside of around 15% from current levels. Don't expect their bullishness, and that of their peers, to change anytime soon. Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now...
CTV News
3 hours ago
- CTV News
LeBlanc says he expects Carney, Trump will speak in the coming days
President of the King's Privy Council for Canada Dominic LeBlanc speaks at a press conference while Prime Minister Mark Carney listens, on Parliament Hill in Ottawa, Thursday, June 19, 2025. THE CANADIAN PRESS/Patrick Doyle OTTAWA — Dominic LeBlanc says he expects Prime Minister Mark Carney and U.S. President Donald Trump will speak 'over the next number of days' as the United States ratchets up pressure in trade talks. The Canada-U.S. trade minister appeared on CBS's 'Face the Nation' on Sunday and spoke about where talks stand between the two countries. LeBlanc told host Margaret Brennan that while Canada is 'disappointed' with Trump's new 35-per-cent tariffs, he is continuing to work toward a deal that would hopefully strike down trade restrictions between the nations. LeBlanc was in Washington last week attempting to find common ground with the Trump administration ahead of Friday's deadline to secure a new deal between the trading partners. While Mexico was granted a 90-day delay on new duties, Trump on Friday hit Canada with a 35-per-cent tariff on all goods that are not compliant with the Canada-U.S.-Mexico Agreement on trade. Canada also continues to face U.S. tariffs on steel, aluminum and automobiles as well as Trump's new 50-per-cent tariffs on semi-finished copper products. This report by The Canadian Press was first published Aug. 3, 2025. Craig Lord, The Canadian Press
