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 new lifetime high 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 $17.3 million.
- TRGP has traded 169,727 shares today.
- TRGP is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in TRGP with the Ticky from Trade-Ideas. See the FREE profile for TRGP NOW at Trade-Ideas
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 stock currently has a dividend yield of 2.9%. TRGP has a PE ratio of 59.7. Currently there are 6 analysts that rate Targa Resources a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Targa Resources has been 198,800 shares per day over the past 30 days. Targa has a market cap of $3.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.10 and a short float of 3.6% with 4.79 days to cover. Shares are up 52.2% year to date as of the close of trading on Thursday.
rates Targa Resources as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 5.4%. Since the same quarter one year prior, revenues rose by 11.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- TARGA RESOURCES CORP reported significant earnings per share improvement 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. This trend suggests that the performance of the business is improving. During the past fiscal year, TARGA RESOURCES CORP increased its bottom line by earning $0.92 versus $0.73 in the prior year. This year, the market expects an improvement in earnings ($1.54 versus $0.92).
- Powered by its strong earnings growth of 85.71% and other important driving factors, this stock has surged by 60.57% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- The gross profit margin for TARGA RESOURCES CORP is currently extremely low, coming in at 10.17%. Regardless of TRGP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.04% trails the industry average.
- The debt-to-equity ratio is very high at 18.99 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, TRGP maintains a poor quick ratio of 0.85, which illustrates the inability to avoid short-term cash problems.
- You can view the full Targa Resources Ratings Report.