Energy Transfer (ET) stock has been trading in a narrow range. The stock has only gained marginally in the last three months. Currently, Energy Transfer is trading at $15.1—more than 1% and 3% below its 50-day and 200-day moving average levels, respectively. The stock trading below both of its moving average levels might concern investors. Energy Transfer stock is trading at an RSI (relative strength index) of 42, which indicates that the stock isn’t in the oversold or the overbought zone.
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Strong total return potential
Energy Transfer stock offers a handsome distribution yield of 8.1%, which is higher than many of its peers. The Alerian MLP ETF (AMLP), which represents the biggest energy MLPs, yields 8.1%.
According to analysts’ estimates, Energy Transfer stock has a mean target price of $21.1—compared to its current market price of $15.1, which implies a potential upside of ~40% over the next 12 months. Given Energy Transfer stock’s superior yield and large estimated upside based on analysts’ estimates, it offers a handsome total return potential for the next 12 months.