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Energy Transfer LP (ET) – A Bullish Mirage?

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When investors are hunting for stocks to buy, sell, or hold, the lure of Wall Streetโ€™s siren call can be hard to resist. Raid Dazed, analysts from brokerage firms seem to wield significant influence over stock prices, but should you heed their song?

According to Wall Streetโ€™s financial finger-waggers, Energy Transfer LP (ET) currently boasts an average brokerage recommendation (ABR) of 1.25, floating around the land of โ€˜Strong Buyโ€™. This rating is the result of 12 brokerage firms offering their two cents โ€“ 10 shouting โ€˜Strong Buyโ€™ and one squeaking โ€˜Buyโ€™ โ€“ contributing to a chorus of 83.3% and 8.3%, respectively.

The Temperamental ABR

Broker Rating Breakdown Chart for ET

Check price target & stock forecast for Energy Transfer LP here>>>

But hereโ€™s the rub โ€“ Wall Streetโ€™s crystal ball often develops cracks when it comes to predicting stock performances. Studies reveal that brokerage recommendations are about as reliable as a palm reader at a county fair when it comes to foreseeing stock price movements. Why? You ask? Because the brokerage firms often have skin in the game, leading to overly optimistic ratings that are about as trustworthy as a fox guarding the henhouse.

Zacks Rank โ€“ The Knight in Shining Armor?

With the Zacks Rank, we encounter a gallant knight riding in to save the day. This trusty steed gives us a clear view of a stockโ€™s potential performance, unswayed by the temptations and trickeries of brokerage firms. The Zacks Rank, guided by earnings estimate revisions, offers a more reliable indicator of a stockโ€™s near-term price performance.

ABR vs. Zacks Rank โ€“ Know Thy Difference

The ABR and the Zacks Rank may seem like two birds of a feather, but they are as different as a cat and a sheep. While the ABR is based solely on brokerage recommendations, the Zacks Rank is rooted in quantitative analysis, specifically earnings estimate revisions, and is displayed in whole numbers from 1 to 5.

So, why pledge allegiance to the Zacks Rank? Well, because the Zacks Rank isnโ€™t last yearโ€™s news when youโ€™re still in January. Itโ€™s fresh, hot off the press, always keeping up with the latest changes in analystsโ€™ estimates to ensure timely and accurate indications of future price movements

Is ET Worthy?

At first glance, ET seems to hover in the middle ground, with a consensus estimate holding steady at $1.09. This, along with other factors, has led to a Zacks Rank #3 (Hold) for ET. So, while Wall Streetโ€™s painted picture may seem rosy, it might be wise to tread lightly on the petals of this stock.

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Energy Transfer LP (ET) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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