5 Best Stocks Under $20

1. Energy Transfer LP (NYSE:ET)

Stock Price as of May 25: $11.17

Stock Price as of November 17: $12.11

Number of Hedge Fund Holders: 31

Energy Transfer LP (NYSE:ET) is the biggest and the most diversified midstream company in North America with a network of 120,000 miles of pipeline.

In the Q1 2022 results, Energy Transfer LP (NYSE:ET) reported an EBTIDA of $3.34 billion, which was significantly higher than the consensus estimates of $3 billion. The company is recovering strongly from the COVID-19 pandemic, and its distribution matches the pre-COVID levels. Energy Transfer LP (NYSE:ET) reported Q1 2022 revenue and EPS of $20.491 billion and 37 cents, respectively, outperforming consensus estimates of $18.76 billion and 32 cents.

In a note issued to investors on April 26, Robert Kad at Morgan Stanley gave Energy Transfer LP (NYSE:ET) stock a target price of $15 along with an Overweight rating. The analyst is bullish on the outlook of the midstream industry for the remainder of this year.

In its Q2 2021 investor letter, Miller Value Partners shared its stance on Energy Transfer LP (NYSE:ET). Here’s what the firm said:

“Energy Transfer LP (ET)rose over the period along with the price of oil climbing 40.59% over the period. The company received positive news that the Dakota Access Pipeline project would not be shut down while the Environmental Impact Statement by the US Army Core of Engineers is drawn up. Energy Transfer reported strong 1Q results with revenue of $17B surpassing expectations for $11.8B with adjusted earnings before income, taxes, depreciation and amortization (EBITDA) hitting $5.04B ahead of consensus of $2.77B. The company raised full year adjusted EBITDA guidance to $12.9-13.3B from $10.6-11.0B previously, with the increase largely related to the benefits realized from Winter Storm Uri. The company paid down $3.7B in debt during the quarter, using strong cash f low to reduce leverage. The company also announced the issuance of $900M in 6.5% Series H perpetual preferreds with the company using the proceeds to repay debt and for general purposes.”

“We have no new position this quarter and have made below changes to our portfolio. We also sold Palantir (PLTR) as I identified it subject to high retail bubble risk (using above method) and are not part of our core “Mindful Compounder” holdings.”

You can also take a peek at the 10 Biotech Penny Stocks with Growth Catalysts and 10 Oil Tanker Stocks That Pay Dividends.

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