5 Cheap Value Stocks to Buy for 2022

2. Energy Transfer LP (NYSE:ET)

P/E Ratio: 4.77

Price as of December 9: $8.55

Number of Hedge Fund Holders: 29

Energy Transfer LP (NYSE:ET) is a favorite stock of value investors, offering a 7.12% forward dividend yield at a stock price of $8.55, as of December 9. Energy Transfer LP (NYSE:ET) is a Texas-based company offering propane pipeline and natural gas transport services.

Energy Transfer LP (NYSE:ET), on November 3, posted earnings for Q3. EPS in the period equaled $0.20, missing estimates by -$0.03. The $16.66 billion revenue was up 67.39% year-over-year, beating estimates by $1.65 billion. 

Of the 29 hedge funds that were bullish on Energy Transfer LP (NYSE:ET) in the third quarter, Abrams Capital Management is the leading stakeholder of the company, owning over 22 million shares worth approximately $212 million.

Here is what Miller Value Partners has to say about Energy Transfer LP (NYSE:ET) in its Q2 2021 investor letter:

“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.”