10 Cheap Stocks With Strong Buy Ratings on Wall Street

3. Energy Transfer LP (NYSE:ET)

PE Ratio: 13.07

Energy Transfer LP (NYSE:ET) is one of the cheap stocks to buy on our list.

TheFly reported that on December 18, Morgan Stanley downgraded ET from Overweight to Equal Weight, maintaining a $19 price target. The firm cited a lack of catalysts to re-rate the shares higher, noting that without a clear event-driven path to close ET’s valuation discount relative to peers, outperformance versus the group is likely to remain challenging, according to the analyst’s research note.

On the same day, Energy Transfer LP (NYSE:ET) announced it is suspending the development of its Lake Charles LNG project. Management stated that continued development was “not warranted” at this time, as the company seeks to focus on projects with superior risk/return profiles. The suspension follows challenges in securing enough equity partners to unload a desired 50% interest in the facility.

Simultaneously, ET announced it will upsize the capacity of its planned Desert Southwest expansion project on the Transwestern Pipeline. To meet surging customer demand in Arizona and New Mexico, the company will increase the pipeline diameter from 42 inches to 48 inches. This modification will boost capacity to 2.3 billion cubic feet per day (Bcf/d) and is expected to increase 2026 growth capital expenditures by approximately $200 million, bringing the total project cost to $5.6 billion.

Energy Transfer LP (NYSE:ET) is a leading U.S. midstream energy company headquartered in Dallas, Texas. It operates over 140,000 miles of pipelines across 44 states, transporting and storing natural gas, crude oil, and natural gas liquids (NGLs).