Renewables represent the future of global energy generation, but their dominance is likely decades away. Traditional energy like oil and gas will power homes and businesses in the mid-term, and there’s still significant upsides to the energy stock to be had on some bargain stocks. Energy Transfer LP (NYSE: ET) is one of those stocks. This is a midstream company that maintains pipelines and distribution networks in America.
Energy Transfer is a solid revenue performer. It has generated fiscal growth for three consecutive years. In the 2019 fiscal year, gross income increased by 23.66%, leading to a gross margin of 14.95% and an EBITDA margin of 19.47%. Profitability is important for this bargain stock because it supports a huge dividend yield of 18.89%. Cash and income suggest that the dividend is safe even during the current economic recession.
Beyond the dividend, this stock is set to provide impressive growth in the coming months. The average target of $10.47 suggests gains can be made over today’s price.
This bargain pick might be tied to traditional energy, but it can help to bolster a portfolio built around speculative stocks. The company has a proven operating model, and it will remain viable and profitable for the foreseeable future.
- 1 Year Price Growth: -52.04%
- YTD Price Growth: -49.65%
- 3 Month Price Growth: -21.89%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.