How Is Targa Resources' Stock Performance Compared to Other Oil & Gas Stocks?

Based in Houston, Texas, Targa Resources Corp. (TRGP) is an energy infrastructure company that owns, operates, acquires, and develops a portfolio of complementary domestic infrastructure assets. Valued at a market cap of $43.4 billion, the company also offers NGL balancing services, and transportation services to refineries and petrochemical companies. 

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and TRGP fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the oil & gas midstream industry. The company’s strengths lie in its large-scale infrastructure, strategic location in high-production areas, and strong cash flow generation from fee-based contracts. Targa has also benefited from increasing NGL exports, capitalizing on global demand growth.

This energy company is currently trading 8.9% below its 52-week high of $218.51, reached on Jan. 22. Shares of TRGP have surged 15.3% over the past three months, outpacing the First Trust Nasdaq Oil & Gas ETF’s (FTXN) 9.2% gain during the same time frame

In the longer term, TRGP has rallied nearly 82.4% over the past 52 weeks, massively outperforming FTXN’s 5% downtick. Moreover, on a YTD basis, shares of TRGP are up 11.5%, compared to FTXN’s 4.4% rise.

To confirm the bullish trend, TRGP has been trading above its 200-day mark over the past year. However, it is trading below its 50-day moving average since early March.

On Feb. 20, shares of TRGP plunged 2.7% after its mixed Q4 earnings release. Its Q4 revenue improved 3.9% year-over-year to $4.4 billion and surpassed Wall Street’s expectations. However, its adjusted earnings of $1.44 per share fell short of the consensus estimate of $1.88. Lower-than-expected operating margin growth in its gathering and processing segment, impacted by the expiration of a lower-margin high-pressure gathering and processing agreement in the Delaware Basin, somewhat affected its otherwise strong performance and led to its earnings miss. 

TRGP’s outperformance looks even more pronounced when compared to its rival, Enterprise Products Partners L.P. (EPD), which gained 17.6% over the past 52 weeks and 8.7% on a YTD basis. 

Given TRGP’s recent outperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 19 analysts covering it, and the mean price target of $224.30 suggests a 12.7% premium to its current levels.