Targa(TRGP) ZACKS·2025-02-25 18:05Core Viewpoint - Targa Resources, Inc. (TRGP) has received a Zacks Rank 2 (Buy) upgrade due to an upward trend in earnings estimates, indicating a positive earnings outlook that may lead to increased stock prices [1][3]. Earnings Estimates and Stock Price Movement - Changes in a company's future earnings potential, as reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [4]. - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, influencing their buying and selling decisions, which in turn affects stock prices [4]. Business Improvement Indicators - The rising earnings estimates and the Zacks Rank upgrade suggest an improvement in Targa Resources' underlying business, which is expected to drive the stock price higher [5]. Earnings Estimate Revisions - Targa Resources is projected to earn $8.27 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 44.1% [8]. - Over the past three months, the Zacks Consensus Estimate for Targa Resources has increased by 1.2% [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimates, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revision features [9][10]. - Targa Resources' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].