5 Value Stocks to Buy According to Billionaire David Tepper

In this article, we will take a look at 5 value stocks to buy according to billionaire David Tepper. If you want to read our discussion on Tepper’s history and his hedge fund’s performance, go directly to 10 Value Stocks to Buy According to Billionaire David Tepper.

5. Energy Transfer LP (NYSE:ET)

Appaloosa Management’s Stake Value: $103,075,000

Percentage Of Appaloosa Management’s 13F Portfolio: 4.12%

Number of Hedge Fund Holders: 31

PE Ratio as of June 23: 9.04

Energy Transfer LP (NYSE:ET) is a Dallas, Texas-based energy company involved in the pipeline transportation of natural gas and propane.

In April, Robert Kad at Morgan Stanley increased the price target on Energy Transfer LP (NYSE:ET) from $12 to $15 while maintaining an Overweight rating on the stock. The future prospects of Energy Transfer LP (NYSE:ET) look promising as the company is expected to continue its strong growth trajectory from the last year. Energy Transfer LP (NYSE:ET) recorded a $1.5 billion YoY increase in-store margin in 2021. Furthermore, the operating cash flow was posted at $11.16 billion and EBITDA at $13.05 billion at the end of 2021.

Energy Transfer LP (NYSE:ET) is trading at a PE ratio of 9.04x, compared to the industry’s average of 11.31x. Furthermore, the stock’s PB ratio is also attractively valued at 1.0x, against the industry’s average of 1.81x.

Energy Transfer LP (NYSE:ET) was discussed in the Q1 2022 investor letter of Miller Value Partners. 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.”

As of Q1 2022, Energy Transfer LP (NYSE:ET) was held by 31 hedge funds.