Energy Transfer (ET) stock is down 9.2% in 2025, underperforming its peers. Despite this, the company boasts a high dividend yield of almost 7.5%. Midstream energy companies could see growth from AI investments and trade policies under President Donald Trump. ET expects growth to revive with $5 billion in growth capex for 2025.

ET’s underperformance in 2025 stands out, with a 13% rise in EBITDA in 2024 driven by acquisitions. The company anticipates a 5% EBITDA growth in 2025 due to the lack of inorganic growth. However, growth is expected to ramp up in 2026 and 2027 with new projects coming online.

With a forward EV-to-EBITDA multiple of 8.6x, ET stock is considered undervalued. Analysts are bullish on the stock, with a majority rating it as a “Strong Buy.” The mean target price is $22.67, suggesting potential for double-digit annualized returns in the coming years.

Read more at Yahoo Finance: This Dividend Stock Yields Almost 7.5% and Looks Set To Gain from Trump’s Trade Deals: Time to Buy?