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KIT NORTON

Sinking Natural Gas Prices Aren't Stopping The IBD Stock Of The Day From Nearing Buy Point

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.

Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.

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