This year, the stock market witnessed a massive sell-off on concerns over the Fed’s continued interest rate hikes to tame the multi-decade high inflation and the consequences of the geopolitical issues. However…
some sectors, such as energy, logistics, and consumer essentials, have remained resilient to market downturns because of their own dynamics.
While rising energy prices due to the geopolitical crisis benefitted the energy sector, surging demand for transportation amid supply-chain disruptions has helped the logistics sector. On the other hand, retailers offering consumer essentials witnessed resilience because of the inelastic demand for their products.
Investors’ confidence in these sectors’ prospects amid the uncertainties surrounding the economy has helped fundamentally sound stocks Energy Transfer LP (ET), Casey’s General Stores, Inc. (CASY), and Universal Logistics Holdings, Inc. (ULH) deliver solid returns this year. Given their favorable sector dynamics and fundamental strength, these stocks may still have enough upside left.
Energy Transfer LP (ET)
ET provides energy-related services. The company owns and operates natural gas transportation pipelines and natural gas storage facilities in Texas and Oklahoma. It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users.
On August 24, 2022, ET announced its subsidiary, Energy Transfer LNG Export, LLC, entering into a 20-year LNG Sale and Purchase Agreement (SPA) with Shell NA LNG LLC related to its Lake Charles LNG project. President of ET, Tom Mason, believes that the agreement demonstrates the company’s belief in the project and its commitment to continuing to deliver much-needed natural gas supplies to markets worldwide.
ET’s total assets increased 2.6% to $108.77 billion for the second quarter ended June 30, 2022, compared to $105.96 billion for the fiscal year ended December 31, 2021. Its net income increased 78.6% year-over-year to $1.62 billion. The company’s total revenues increased 71.8% year-over-year to $25.95 billion. Additionally, its EPS came in at $0.39, representing a 95% increase from the prior-year quarter.
ET’s EPS and revenue for the quarter ended September 30, 2022, are expected to increase 85% and 44.3% year-over-year to $0.37 and $24.04 billion, respectively. It has an impressive earnings surprise history, surpassing the consensus EPS estimates in three of the trailing four quarters. The stock has gained 55.2% year-to-date to close the last trading session at $12.77.
ET’s POWR Ratings reflect solid prospects. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
Within the B-rated Energy – Oil & Gas industry, ET is ranked #27 of 94 stocks. The company has an A grade for Momentum and a B for Value.
Click here to see the additional POWR Ratings of ET for Growth, Stability, Sentiment, and Quality.
Casey’s General Stores, Inc. (CASY)
CASY operates convenience stores under the Casey’s and Casey’s General Store names. It offers a selection of food, beverages, tobacco and nicotine products; health and beauty aids; automotive products; and other non-food items.
On May 31, 2022, CASY surpassed 5 million members enrolled in its loyalty program, ‘Casey’s Rewards.’ CASY’s Digital Experiences VP, Art Sebastian, said, “Our members are highly engaged, providing us with information and…
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