Bull’s Eye Report: Targa Resources Corp. (TRGP)

TRGP has followed others in the LNG/natgas sector on the way up

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
Targa Resources Corp. TRGP Oil & Gas Storage & Transportation 7.4 +19.25% $65.25

Why We Like The Stock:

Targa Resources Corp. (NYSE:TRGP) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Energy has been a lagging sector this year, though the Oil & Gas Storage & Transporation sub-industry group has been a bright spot. Much like Kinder Morgan Management (NYSE:KMR), Cheniere Energy (NYSE:LNG), and SemGroup (NYSE:SEMG), Targa Resources has had a strong showing thus far in 2013. Looking back a bit further, TRGP has been steadily trending higher since October of 2011, making higher highs and higher lows on a weekly basis, while pausing to consolidate gains along the way. TRGP is currently in one of those consolidation phases after reaching highs of ~$68.75 in early April. Sitting at the low of the range, we like TRGP as a buy here as long as it stands pat above its 50-day moving average. We wouldn’t give the stock a long leash here, but we think TRGP is a compelling chart and an attractive trading opportunity.

We Would Be Buyers:

At the current price (~$65.25).

Company Profile:

Targa Resources Corp. owns, operates, acquires and develops a diversified portfolio of complementary midstream energy assets. Its indirect subsidiary is the sole general partner of Targa Resources Partners LP. The partnership is engaged in the business of gathering, compressing, treating, processing and selling natural gas and storing, fractionating, treating, transporting, terminaling and selling natural gas liquids (NGLs), NGL products, refined petroleum products and crude oil.

Stock Rating: 7.4

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Targa Resources Corp. – Last Three Months

TRGP 1 Bull's Eye Report: Targa Resources Corp. (TRGP)

Targa Resources Corp. – Last 12 Months

TRGP 2 Bull's Eye Report: Targa Resources Corp. (TRGP)

Targa Resources Corp. – Last Five Years

TRGP 3 Bull's Eye Report: Targa Resources Corp. (TRGP)
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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.


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