With 2012 just beginning, now's a great time to gauge how the stocks you're interested in are likely to do this year and beyond. By knowing what stock analysts and fellow investors expect from a stock, you'll be smarter about whether you should buy it for your portfolio -- or sell it if you already own it.
Today, let's take a look at Energy Transfer Partners (NYSE: ETP ) . As I discussed last month, Energy Transfer Partners has suffered somewhat from the glut of natural gas and competition among pipeline and storage peers. But with consolidation activity picking up in the industry, could the company actually be best positioned to take advantage of changing conditions in 2012? Below, I'll take a closer look at what people expect from Energy Transfer Partners and its rivals.
Forecasts on Energy Transfer Partners
|Median Target Stock Price||$49|
|2011 EPS Estimate||$1.57|
|2012 EPS Estimate||$2.45|
|Expected Annual Earnings Growth, Next 5 Years||19%|
Source: Yahoo! Finance.
Will Energy Transfer Partners rise in 2012?
Analysts are giving mixed messages about Energy Transfer Partners. On one hand, their target price of the stock is less than $2 above the current share price. However, they still expect huge earnings growth for the company in 2012. Motley Fool CAPS members weigh in on the optimistic side, giving the company their top rating of five out of five stars.
One challenge the whole industry faces is that the natural gas market can't seem to catch a break. Both Range Resources (NYSE: RRC ) and Ultra Petroleum (NYSE: UPL ) have gotten off to a horrible start in 2012, as the gas-focused stocks have some of the heaviest exposure to natural gas prices, which have fallen to decade-lows to start off the year. Among pipeline companies, those pressures have led to consolidation in the industry, with combinations aiming to build extensive networks across the continent.
Price weakness doesn't directly translate to problems for Energy Transfer Partners, though. The company has an agreement with ExxonMobil (NYSE: XOM ) subsidiary XTO Energy to provide processing and transportation for gas in the Barnett and Woodford shale areas. But as Energy Transfer Partners' recent dispute with Enterprise Products Partners (NYSE: EPD ) over a proposed Cushing-Houston pipeline reveals, deals aren't a sure thing until they're done.
If natural gas will ever stabilize, then Energy Transfer Partners could profit in a big way from the increased demand. For now, though, the company may need to tread water in an ultra-competitive market in order to hold its own.
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Click here to add Energy Transfer Partners to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.