Energy, Beauty, and Tech Stocks: A Portfolio Diversification Guide

Investors are considering Energy Transfer, E.l.f Beauty, and Alphabet as attractive long-term holdings. Each company offers growth potential in their respective sectors, making them appealing for a diversified portfolio.

Date: 04-01-2025

AI Rating: 7

Energy Transfer (NYSE: ET) stands out with its significant growth prospects in the midstream energy sector. The company is leveraging its extensive infrastructure for energy arbitrage and has announced a major $2.7 billion project, indicating robust forward momentum. Additionally, it trades at a favorable enterprise value-to-EBITDA multiple of 8.4, considerably lower than the historical average of 13.7 for MLPs, and offers a forward yield of 6.6% with expected distribution growth of 3% to 5%.

E.l.f Beauty (NYSE: ELF) is thriving in the consumer products industry, reporting a 40% sales growth last quarter. Despite this impressive growth, its forward price-to-earnings (P/E) ratio stands at 28.5, and its PEG ratio of 0.5 suggests that the stock is undervalued relative to its growth potential, making it an attractive investment opportunity moving forward.

Alphabet (NASDAQ: GOOGL) is equally compelling in the tech sector. With a forward P/E of just 18.5, it reflects good value compared to its competitive standing. The revenue growth in its cloud segment was remarkable, with a 35% increase last quarter, leading to significant operating income improvements from $266 million to $1.95 billion. The company’s dominance in adtech, combined with its growth in AI, positions it well for future profitability.

Stocks: ET ELF GOOGL