$196.95
arrow_drop_up1.08%Is TRGP a Buy or Sell based on AI Analysis?
Fundamental Analysis
Targa Resources Corp has a strong dividend yield of 2.01%, which indicates that the company is committed to returning value to its shareholders. Additionally, the company has a payout ratio of 54.05%, suggesting that it has a healthy balance between paying dividends and retaining earnings for future growth. The company also has a solid return on equity of 32.93%, indicating that it is effectively utilizing shareholder equity to generate profit. Furthermore, Targa Resources Corp has a PE ratio of 27.59, which is in line with industry standards and indicates that the company's stock may be fairly valued. The company's price to sales ratio of 1.38 suggests that investors are willing to pay $1.38 for every $1 of the company's sales, which may indicate strong investor confidence in the company's revenue generating potential. Lastly, Targa Resources Corp has a strong free cash flow margin of 5.29%, indicating that the company is efficiently converting its revenue into free cash flow, which can be used for reinvestment or returned to shareholders.
Positive Development
Targa Resources Corp has reported record earnings for Q4 and full year 2023, indicating strong financial performance. The company has forecasted rising profits on 2024 exports, which suggests that the company's business is expected to grow in the future. The company's stock price has been steadily increasing over the past weeks, indicating investor confidence in the company's performance.
Negative Development
The company's stock price has been relatively high in the past weeks, which could indicate a potential bubble. The company's debt-to-equity ratio is relatively high, which could indicate financial risk. The company's current ratio is slightly below 1, indicating that the company might have difficulty in paying its short-term debts.
Technical Analysis
Based on the technical analysis data provided for Targa Resources Corp (TRGP), it appears that the stock is currently rated as a "SELL." This rating is based on various technical indicators, including the MACD, ADX, and ROC which are signaling a hold, while the RSI, CCI, WILLR, and STOCHRSI indicators are showing sell signals. Additionally, the stock has a beta of 2.19, suggesting that it is more volatile compared to the overall market. The stock's current price is $100.99, with a seven-day price change of 4.65% and a one-month price change of 18.01%. The technical analysis also highlights that the stock's price is 34.05% discounted from its all-time high. Furthermore, the technical analysis data for TRGP indicates that the stock has a trailing PE ratio of 27.14 and a forward annual dividend yield of 2.01%. The stock has a fifty-two weeks high of $101.09 and a fifty-two weeks low of $64.85. The stock sector is Energy, with a sector score of 62 and a sector value score of 28. The stock has 223.16 million shares outstanding and a market cap of $22.54 billion. The technical indicators for the stock suggest that investors should closely monitor the various sell signals and volatility associated with TRGP before making any investment decisions.
Conclusion and recommendation
Based on the data provided, Targa Resources Corp (TRGP) appears to be a stock with a fairly positive outlook. With a current price of $100.99 and a market cap of $22.54B, the company has shown consistent growth over the years, with a five-year price change percent of 142.94%. Additionally, Targa Resources Corp offers a dividend yield of 2.01% and has a strong return on equity of 32.93%. The company also has a healthy balance sheet, with a current ratio of 0.8 and a debt-to-equity ratio of 2.83. In conclusion, Targa Resources Corp could be a good investment opportunity for those looking for stable returns and potential growth in the energy sector. The company's strong financial performance, dividends, and market growth scores indicate that it is well-positioned for future success. However, investors should keep an eye on factors such as market volatility, industry trends, and regulatory changes that could impact the company's performance. Overall, with a solid track record and positive analyst forecasts, Targa Resources Corp presents a promising investment opportunity for those seeking long-term growth potential in the energy sector.