Investors are closing out 2024 with one thought in mind: how to make 2025 a better financial year. Working toward this goal begins with having the right components in the portfolio, some of which are clearer today than ever. Wall Street and economic forces are aligned with the energy sector in 2025, giving investors an opportunity to outperform the market this year.
Energy Transfer Today
Energy transfer
- 52 week range
- $13.79
▼
$21.45
- Dividend yield
- 6.12%
- P/E ratio.
- 15.49
- VALUE VALUE
- $20.82
With that in mind, investors should start by understanding that analysts at Goldman Sachs have taken a positive outlook on oil prices for the year, a topic investors can find in the Bank’s Macro Outlook 2025 report. Moreover, other market players have also begun to express their bullish views on oil prices in recent months, showing the rest of the market how much money there is to be made in this space.
Here’s why there have been several moves in stocks this month Transfer energy LP NYSE: You don’t do thatmaking it one of the best energy picks for investors to consider for potential contributions in the coming quarters. Before discussing the details of this potential purchase, investors need to have a macro checklist on hand so they can further justify the details behind the energy transfer momentum.
Large support forces for oil rallies
A few quarters ago, Warren Buffett decided to save up to 29% Occidental Petroleum Co. NYSE:Oxy In its own version of the bullish bet, oil will come out ahead in 2025. Moreover, Paul Tudor Jones said that oil is an incredibly cheap commodity today during a recent interview with CNBC.
If that weren’t enough, even hedge funds have generally been quietly building positions in oil futures as their own way of betting on the rally. Now, one of the main catalysts for this oil surge is the potential expansion of US manufacturing activity, which appears to be at the top of the new administration’s agenda.
Moreover, China (representing over 40% of global oil demand) has now reported three consecutive months of production expansion. Seeing the world’s two largest economies increase their activity is one sure way to say that oil demand is likely to land higher.
But, of all the players in the space, investors may wonder why energy transmission deserves their attention at all. This is where acquiring multiple market bodies – and participants – can come in handy when developing a potential purchase thesis.
The market has taken over the energy transfer
If the price action is any indication of sentiment, then investors can safely assume that the market is currently promoting energy transfer, as it has managed to trade up to 98% of its 52-week high. Moreover, the thesis and momentum behind the energy has pushed other forces to work and in favor of this company.
Energy Transmission (ET) Price Chart for Friday, January 24, 2025
Such a theme can be confirmed through recent institutional buying. As of January 2025, those at Cushing Asset Management LP decided to increase their energy transmission shares by as much as 4.0%, which may not sound like much on a percentage basis, but it resulted in their net position reached 148.6 US dollars. million today.
To be taken as another sign of potential bullishness in the stock, moving forward, investors can look further afield and check out the company’s recent decline of 15.9% over the past month, which shows a bearish capitulation in the face of all this upside potential.
And then comes one of the main benefits that the energy conveys offers to its shareholders. Due to underlying industry tailwinds, management justifies paying out up to $1.29 per share in dividends, which at today’s price translates to an annualized dividend yield of up to 6.2%.
This way, investors can still generate cash flow and liquidity while holding energy transmission stocks. At the same time, they are waiting for these bullish events to play out. What’s even better for investors is the current valuation multiples seen in the stock.
Even though it has outperformed on a price action basis, its price-to-earnings (P/E) ratio is still at 15.6x, well below the 35.1x average today. While there are plenty of tailwinds, momentum and price action for investors to take advantage of this year, energy transmission stocks are still trading at a significant discount that investors can take advantage of this year.
Before you consider energy transfer, you’ll want to hear this.
Marketbeat tracks the top and best-performing analysts with top-performing Wall Street analysts and the stocks they recommend to their clients daily. Marketbeat has identified five stocks that top analysts are quietly whispering to their clients to buy now, before the broader market takes over… and energy transmission wasn’t on the list.
While Energy Transmission currently has a Moderate Buy rating among analysts, the top-rated analysts consider these five stocks to be Outperform Buys.
View five stocks here
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