We recently compiled a list of the 10 S&P 500 Stocks on Jim Cramer’s Radar. In this article, we are going to take a look at where Targa Resources Corp. (NYSE:TRGP) stands against the other S&P 500 stocks.
Jim Cramer, host of Mad Money, recently discussed the current state of the market and also discussed both the leading and lagging stocks within the S&P 500. He posed an intriguing question: What if Trump’s tariffs are more negotiable than expected? Instead of a hard-line approach, Cramer suggested they could end up being more like a “steak knife” than a “meat axe,” meaning less harmful to trade and international relations.
READ ALSO Jim Cramer Discussed These 10 NASDAQ 100 Stocks Recently and 8 Stocks on Jim Cramer’s Radar
While a more reasonable tariff policy might not be ideal for global trade, it would be a positive development for stocks, particularly if it results in lower prices for American consumers or if multinational companies move their manufacturing to more favorable countries. Cramer emphasized that, for stockholders looking for growth, hopes should be placed on negotiable tariffs.
“If you own stocks and you want them higher, you have to hope for negotiable tariffs that could cause countries to lower prices to us or make multinational companies move their manufacturing base here to a more friendly country.”
Cramer also discussed the S&P 500’s performance this year, noting that, while it is clear which stocks have thrived in the Nasdaq, the winners and losers in the broader S&P 500 have been more difficult to pinpoint.
Additionally, Cramer mentioned that several of the stocks in his Charitable Trust, which are reliant on a rebound in China, are ones he’s not excited about at the moment, especially considering the disappointing Chinese economic data. He mentioned that his dismay for such stocks will only last until “they annualize the crummy Chinese numbers and then they’ll probably bounce back.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money on January 2. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An oil tanker at sunset, symbolizing the company’s supply of global crude oil.
Targa Resources Corp. (NYSE:TRGP)
Number of Hedge Fund Holders: 45
Cramer highlighted Targa Resources Corp. (NYSE:TRGP) and suggested sticking with the stock.
“Finally, there’s Targa Resources, up 105%. Now, here’s a natural gas pipeline company, maybe the key to keeping the Permian growing because there’s too much gas in the Permian that needs to be taken away… Targa has both the pipes and the ability to fractionate natural gas liquids. While it’s not a liquified natural gas company, it was believed to be a big loser when President Biden announced that pause in LNG construction a year ago. That pause is over and it, well, I think it’ll be lifted immediately and that will lift Targa even more. By the way, I think that Cheniere Energy was the better one to buy, but I think Targa has the ability to rebuild its… dividend and that’s a good reason to stay long on the stock. Targa’s for me.”
Targa Resources Corp. (NYSE:TRGP) owns and operates a portfolio of midstream infrastructure assets, involved in the gathering, processing, transporting, and selling of natural gas, natural gas liquids, and crude oil, along with offering related logistics and transportation services. It had a successful year in 2024, achieving record earnings and volumes.
This growth was largely driven by the completion of several key organic expansion projects, which included the Daytona NGL Pipeline expansion in the third quarter and the startup of the new 120,000-barrel-per-day Train 9 fractionator in Texas during the first quarter. Furthermore, the company completed the Wildcat II natural gas processing plant in late 2023.
Targa Resources Corp. (NYSE:TRGP) is investing in expanding its midstream network to meet growing demand, with six natural gas processing plants under construction, which are set to begin operations by the third quarter of 2026. The company is also building an NGL fractionator and expanding its Galena Park terminal, both of which are expected to be completed by the second half of 2025.
Overall TRGP ranks 5th on our list of the S&P 500 stocks on Jim Cramer’s radar. While we acknowledge the potential of TRGP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TRGP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.