TRGP Maintains Uptrend as Strong EPS Growth Supports Interest

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TRGP Maintains Uptrend as Strong EPS Growth Supports InterestTarga Resources Corp.BATS:TRGPfinvestnomicsTRGP is attracting buying interest as the stock remains in a strong uptrend, making higher highs and higher lows while trading above its 20- and 50-day moving averages. Targa Resources Corp. is a $60.44 billion market capitalization company that engages in the gathering, compressing, treating, processing, transporting, and marketing of natural gas and natural gas liquids (NGLs). The company operates through three segments: Gathering and Processing, Logistics and Transportation, and Other. The Gathering and Processing segment includes assets used to gather, process, and purchase and sell natural gas produced from oil and gas wells. The Logistics and Transportation segment comprises the assets and activities necessary to transport, fractionate, store, and export NGL products. The Other segment includes mark-to-market gains and losses from commodity derivative contracts. TRGP is a narrow economic moat company that has grown revenue in one of the last three quarters and EPS consistently over the last three quarters. The company maintains solid profitability, with operating and net margins of 25% and 11%, respectively. ROE and ROIC stand at 76% and 11%, reflecting strong shareholder returns and efficient capital deployment. Its current ratio of 0.7x indicates relatively modest short-term liquidity, while its debt-to-equity ratio of 6.1x reflects significant leverage.