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Energy Transfer Partners Is Fundamentally Strong $ETP

|Includes: Energy Transfer Partners, L.P. (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 (NYSE: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

  1. A profit margin of 20% or higher
  2. Sales should be trending upwards for the past five years
  3. 3-5 year Projected growth rate of 10% or higher
  4. 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
  5. Interest coverage ratio of 3.00 or higher
  6. 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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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.