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Energy Transfer Partners Is Fundamentally Strong $ETP



November 24, 2012 – Comments (0) | RELATED TICKERS: ETP

With the fluctuation in the markets and the price of oil it is more important than ever to focus on the fundamentals, but what to look for?  Well we a company and some of the reasons it could be a good investment.  When making decisions here are a few things we consider important before your final decision.

We are going to look at Energy transfer partners (ETP) today. We will examine it from a fundamental and technical perspective. In general, investors should select a company based on its quarterly earnings growth rates, profitability margins, payout ratio, quarterly revenue growth rates, current ratio, etc. in contrast to focusing only on the yield. Before taking a look at Energy transfer partners, we put it through the following selection process and it meets and exceeded all the listed requirements.

The selection process:

-  A profit margin of 20% or higher

- Sales should be trending upwards for the past five years

- 3-5 year Projected growth rate of 10% or higher

- A five year expected PEG ratio that is below the industry average of 2.76. Energy transfer has five year expected PEG of 1.43

- Interest coverage ratio of 3.00 or higher

- A trailing P/E that is significantly below the industry average of 22.44. Energy transfer partners has a trailing P/E of 9.07

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