---
title: "3 Energy Stocks That Are Screaming Deals Right Now"
description: "The stock market has risen over 13% this year, but some energy stocks are considered undervalued. Three notable options are: 1) Energy Transfer (ET), trading at less than 9 times earnings with an 8% y"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/261833341.md"
published_at: "2025-10-20T08:21:03.000Z"
---

# 3 Energy Stocks That Are Screaming Deals Right Now

> The stock market has risen over 13% this year, but some energy stocks are considered undervalued. Three notable options are: 1) Energy Transfer (ET), trading at less than 9 times earnings with an 8% yield and strong growth potential; 2) MPLX, with a 7.8% yield and nearly 7% earnings growth since 2021; and 3) Plains All American Pipeline (PAA), yielding 9.6% and optimizing its portfolio for better cash flow. These MLPs offer high yields despite their complex tax structures, appealing to investors seeking value in a high-priced market.

The stock market has continued to rise this year, with the **S&P 500** up over 13%. That has it trading at more than 20 times earnings, well above its average in the mid-teens over the past quarter-century.

While the broader market trades at a premium, there are still pockets of value for discerning investors. In particular, several energy stocks are screaming deals right now. Here are three dirt-cheap ones.

Image source: Getty Images.

## 1\. Energy Transfer

**Energy Transfer** (ET -1.38%) currently trades at less than 9 times earnings. That's the second-lowest level in its peer group, where the average is around 12 times, which is why it currently yields an eye-popping 8%. The midstream giant trades at a low level despite delivering brisk growth (10% compound annual earnings growth rate since 2020). It's also in its strongest financial position in history.

The master limited partnership (MLP) has plenty of growth ahead. It's spending $5 billion this year on growth capital projects, which should fuel accelerated earnings growth. Meanwhile, it has projects in the backlog scheduled to enter commercial service through 2029. These growth projects will give the MLP more fuel to increase its high-yielding distribution, which it aims to grow by 3% to 5% each year.

## 2\. MPLX

**MPLX** (MPLX 0.80%) also trades at a low valuation, which is why it has a 7.8% distribution yield. Like Energy Transfer, MPLX is an MLP that's growing at a healthy rate. It has grown its earnings and cash flow at a nearly 7% compound annual rate since 2021.

The MLP has ample fuel to continue growing its distribution and payout in the future. It's deploying over $5 billion into growth initiatives this year, including spending on organic expansion projects and making accretive acquisitions. It has growth capital projects lined up to come online through the end of the decade, giving it lots of visibility into its ability to grow its cash flow and high-yielding payout in the future.

## 3\. Plains All American Pipeline

**Plains All American Pipeline** (PAA) is another high-yielding MLP. The oil pipeline company currently yields 9.6% due to its rock-bottom valuation. The MLP has been growing at a solid clip -- 7% compound annual earnings growth since 2021 -- and is in its strongest financial position in years.

The midstream company is in the middle of optimizing its portfolio. It's selling its Canadian natural gas liquids assets to enhance the durability of its cash flows by shedding assets with commodity price volatility. It's recycling that capital into new investments that produce more resilient cash flows. This strategy will give it more fuel to grow its high-yielding payout.

## Bargain-basement energy stocks

Energy Transfer, MPLX, and Plains All American Pipeline trade at low valuations, in part due to their MLP structures, which require sending investors a Schedule K-1 Federal Tax Form each year. While tax filing can be more complex, the high-yield income from these MLPs can justify the extra effort for investors seeking bargains in today's high-priced market.

### Related Stocks

- [ET.US - Energy Transfer LP](https://longbridge.com/en/quote/ET.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| 以下是我目前推薦購買的兩隻高收益能源股票 | Energy Transfer 和 MPLX 是目前值得購買的兩大主權財富基金（MLP） | [Link](https://longbridge.com/en/news/272127867.md) |
| Energy Transfer 預計在 2026 年的資本支出將達到 55 億美元 | 能源轉移預計 2026 年的資本支出為 55 億美元 | [Link](https://longbridge.com/en/news/271649206.md) |
| 美國 3 年期國債拍賣的高收益率低於上個月，且需求有所下降 | 美國 3 年期國債拍賣最高收益率較上月下降，需求減弱 | [Link](https://longbridge.com/en/news/275498317.md) |
| PBF 能源｜8-K：2025 財年 Q4 營收 71.4 億美元超過預期 |  | [Link](https://longbridge.com/en/news/275749250.md) |
| 百匯生命產業信託推可持續融資框架 發展綠色與社會項目 \| 聯合早報網 | 百匯生命產業信託推出可持續融資框架，旨在將可持續金融交易的資金投向新加坡、日本及歐洲的綠色與社會項目，包括改善醫療及養老設施、提升能源效率和推進可再生能源計劃。該信託強調可持續發展是其資產管理的核心，並承諾在未來 10 年內實現至少 80% | [Link](https://longbridge.com/en/news/275452452.md) |

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
