Targa Resources Stock Market Value
| TRGP Stock | USD 201.06 6.25 3.01% |
| Symbol | Targa |
Targa Resources Price To Book Ratio
Is Oil & Gas Storage & Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Targa Resources. If investors know Targa will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Targa Resources listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.804 | Dividend Share 2.75 | Earnings Share 5.54 | Revenue Per Share 73.225 | Quarterly Revenue Growth (0.01) |
The market value of Targa Resources is measured differently than its book value, which is the value of Targa that is recorded on the company's balance sheet. Investors also form their own opinion of Targa Resources' value that differs from its market value or its book value, called intrinsic value, which is Targa Resources' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Targa Resources' market value can be influenced by many factors that don't directly affect Targa Resources' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Targa Resources' value and its price as these two are different measures arrived at by different means. Investors typically determine if Targa Resources is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Targa Resources' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Targa Resources 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Targa Resources' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Targa Resources.
| 12/07/2022 |
| 11/26/2024 |
If you would invest 0.00 in Targa Resources on December 7, 2022 and sell it all today you would earn a total of 0.00 from holding Targa Resources or generate 0.0% return on investment in Targa Resources over 720 days. Targa Resources is related to or competes with Plains GP, Western Midstream, EnLink Midstream, Plains All, Hess Midstream, and MPLX LP. Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops... More
Targa Resources Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Targa Resources' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Targa Resources upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.8 | |||
| Information Ratio | 0.276 | |||
| Maximum Drawdown | 7.97 | |||
| Value At Risk | (1.92) | |||
| Potential Upside | 2.39 |
Targa Resources Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Targa Resources' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Targa Resources' standard deviation. In reality, there are many statistical measures that can use Targa Resources historical prices to predict the future Targa Resources' volatility.| Risk Adjusted Performance | 0.2778 | |||
| Jensen Alpha | 0.504 | |||
| Total Risk Alpha | 0.3163 | |||
| Sortino Ratio | 0.2529 | |||
| Treynor Ratio | 0.9646 |
Targa Resources Backtested Returns
Targa Resources appears to be very steady, given 3 months investment horizon. Targa Resources owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.32, which indicates the firm had a 0.32% return per unit of risk over the last 3 months. By inspecting Targa Resources' technical indicators, you can evaluate if the expected return of 0.55% is justified by implied risk. Please review Targa Resources' Risk Adjusted Performance of 0.2778, semi deviation of 1.15, and Coefficient Of Variation of 281.48 to confirm if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Targa Resources holds a performance score of 24. The entity has a beta of 0.6, which indicates possible diversification benefits within a given portfolio. As returns on the market increase, Targa Resources' returns are expected to increase less than the market. However, during the bear market, the loss of holding Targa Resources is expected to be smaller as well. Please check Targa Resources' potential upside, as well as the relationship between the kurtosis and day typical price , to make a quick decision on whether Targa Resources' existing price patterns will revert.
Auto-correlation | 0.82 |
Very good predictability
Targa Resources has very good predictability. Overlapping area represents the amount of predictability between Targa Resources time series from 7th of December 2022 to 2nd of December 2023 and 2nd of December 2023 to 26th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Targa Resources price movement. The serial correlation of 0.82 indicates that around 82.0% of current Targa Resources price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.82 | |
| Spearman Rank Test | 0.76 | |
| Residual Average | 0.0 | |
| Price Variance | 955.5 |
Targa Resources lagged returns against current returns
Autocorrelation, which is Targa Resources stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Targa Resources' stock expected returns. We can calculate the autocorrelation of Targa Resources returns to help us make a trade decision. For example, suppose you find that Targa Resources has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Targa Resources regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Targa Resources stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Targa Resources stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Targa Resources stock over time.
Current vs Lagged Prices |
| Timeline |
Targa Resources Lagged Returns
When evaluating Targa Resources' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Targa Resources stock have on its future price. Targa Resources autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Targa Resources autocorrelation shows the relationship between Targa Resources stock current value and its past values and can show if there is a momentum factor associated with investing in Targa Resources.
Regressed Prices |
| Timeline |
Pair Trading with Targa Resources
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Targa Resources position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Targa Resources will appreciate offsetting losses from the drop in the long position's value.Moving together with Targa Stock
| 0.71 | AM | Antero Midstream Partners | PairCorr |
| 0.95 | EE | Excelerate Energy | PairCorr |
| 0.95 | ET | Energy Transfer LP Aggressive Push | PairCorr |
| 0.86 | DLNG | Dynagas LNG Partners Earnings Call This Week | PairCorr |
Moving against Targa Stock
| 0.9 | LPG | Dorian LPG | PairCorr |
| 0.76 | GEL | Genesis Energy LP | PairCorr |
| 0.68 | FRO | Frontline Earnings Call This Week | PairCorr |
| 0.6 | BROGW | Brooge Energy Limited | PairCorr |
| 0.41 | TK | Teekay | PairCorr |
The ability to find closely correlated positions to Targa Resources could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Targa Resources when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Targa Resources - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Targa Resources to buy it.
The correlation of Targa Resources is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Targa Resources moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Targa Resources moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Targa Resources can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Targa Stock Analysis
When running Targa Resources' price analysis, check to measure Targa Resources' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Targa Resources is operating at the current time. Most of Targa Resources' value examination focuses on studying past and present price action to predict the probability of Targa Resources' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Targa Resources' price. Additionally, you may evaluate how the addition of Targa Resources to your portfolios can decrease your overall portfolio volatility.