SoTM Bull's Eye Report - Today's Most Compelling Buy
Tuesday, May 21, 2013
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.
% Gain S.T.
Loss Targa Resources Corp TRGP Oil & Gas Storage & Transportation 7.3 +23.06% .38
Why We Like The Stock:
Targa Resources Corp (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. We featured TRGP back on The Bull's Eye Report for 5/1, though this morning it is back on our radar after crossing above it's short-term moving averages and maintaining a wonderful technical setup. It looks to be exiting its consolidation phase to the upside, so now would be a good time to pick it up. Read why we like the stock from our report on 5/1 below:
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 (KMR), Cheniere Energy (LNG), and SemGroup (SEMG), Targa Resources (TRGP) 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 ~.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 (~.40).
Targa Resources Corp. (Targa) forms the Partnership to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets. Its indirect subsidiary is the sole general partner of Targa Resources Partners LP (the Partnership). 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. The Company operates in two divisions: Natural Gas Gathering and Processing. Natural Gas Gathering and Processing, consisting of two segments: Field Gathering and Processing and Coastal Gathering and Processing. Logistics and Marketing, consisting of two segments: Logistics Assets and Marketing and Distribution. On September 30, 2011 the Partnership acquired refined petroleum products and crude oil storage and terminaling facilities in two separate transactions.
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.
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.
Targa Resources Corp - Last 3 Months
Targa Resources Corp - Last 12 Months
Targa Resources Corp - Last 5 Years
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