Targa Resources (TRGP): Today's Post-Market Laggard
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Targa Resources as such a stock due to the following factors:
- TRGP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $72.0 million.
- TRGP is down 3.9% today from today's close.
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More details on TRGP:
Targa Resources Corp., through its general and limited partner interests in Targa Resources Partners LP, provides midstream natural gas and natural gas liquid (NGL) services in the United States. The company operates in two divisions, Gathering and Processing, and Logistics and Marketing. The stock currently has a dividend yield of 3.2%. TRGP has a PE ratio of 35.1. Currently there are 8 analysts that rate Targa Resources a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Targa Resources has been 757,700 shares per day over the past 30 days. Targa has a market cap of $4.1 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.56 and a short float of 6.3% with 3.04 days to cover. Shares are down 9.4% year-to-date as of the close of trading on Tuesday.
Analysis:
rates Targa Resources as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- TARGA RESOURCES CORP has improved earnings per share by 27.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TARGA RESOURCES CORP increased its bottom line by earning $2.44 versus $1.55 in the prior year. This year, the market expects an improvement in earnings ($3.68 versus $2.44).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income increased by 24.4% when compared to the same quarter one year prior, going from $20.50 million to $25.50 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TARGA RESOURCES CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 94.78% to $242.70 million when compared to the same quarter last year. In addition, TARGA RESOURCES CORP has also vastly surpassed the industry average cash flow growth rate of -11.94%.
- Despite the weak revenue results, TRGP has outperformed against the industry average of 19.8%. Since the same quarter one year prior, revenues slightly dropped by 3.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Targa Resources Ratings Report.
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