Equitrans Midstream is Tuesday's IBD Stock Of The Day, as the gas transmission and storage company brushes off falling U.S. natural gas prices. The stock is setting up just below a buy point amid a run of more than 50% in 2023. ETRN stock gained ground Tuesday.
U.S. natural gas prices dipped less than 2% Tuesday to around $2.47 per British thermal unit, amid a weeklong bounce from six-month lows. Elevated output and an anticipated decrease in demand during the upcoming week has helped keep prices under pressure. Natural gas had traded above $3.80 per Btu in early November.
However, elevated production levels are typically a plus for Equitrans, and Tuesday's slip appeared to have little effect on ETRN stock.
Pennsylvania-based Equitrans Midstream is one of the largest natural gas gatherers in the U.S., with a significant transmission footprint in the Appalachian Basin. The midstream services company went public on Nov. 12, 2018.
Equitrans Midstream has a natural gas gathering segment and a gas transmission business, which includes interstate pipelines and storage systems. ETRN also has a water network segment — which includes pipelines and water handling facilities. The company's operations are focused primarily in southwestern Pennsylvania, northern West Virginia and southeastern Ohio.
Equitrans Midstream topped third-quarter earnings and revenue expectations on Oct. 31, with EPS ballooning more than 200%. Analysts forecast full-year profit growing 76% to 81 cents per share and revenue increasing around 2% to $1.38 billion, according to FactSet.
ETRN Stock Performance
Equitrans Midstream shares advanced 0.9% to 10.23 amid lower-than-average volume Tuesday during market action. ETRN stock has climbed sharply since April, forming a cup-with-handle base, and is less than 2% below a 10.46 buy point, according to MarketSmith analysis.
The stock broke out above a flat-base entry in late July. That breakout failed as shares fell more than 7%-8% below the buy point, triggering the automatic sell rule.
ETRN stock has rallied in December, gaining more than 8%, after a 5.7% advance in November. So far in 2023, ETRN stock has surged more than 50%, outperforming the S&P 500 index — despite a drop of nearly 50% from December to April.
Equitrans Midstream has an 88 Composite Rating out of a best-possible 99. ETRN stock also has a 91 Relative Strength Rating and a 52 EPS Rating.
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