Are Delek US Holdings Inc (DK) and Targa Resources Partners LP (NGLS) The Right Energy Sources?
New York, NY – GDP INSIDER – 03/23/2015.
This article discusses two companies: Delek US Holdings Inc (NYSE:DK) and Targa Resources Partners LP (NYSE:NGLS)
Delek US Holdings Inc (NYSE:DK) declined slightly from its 52 weeks high of $38.83 on Friday, with the stock falling 0.13% or $0.05 to close at $37.90 on very active trading of 2.632 million shares, compared to its three month average of 0.919 million. The downstream energy company specialized in refining, distributing and retailing petroleum, has been climbing relentlessly upwards since the beginning of the year and is defying the difficulties that most companies related to oil are having. With the stock up 36.45% so far this year and many market analysts revising their earnings estimates upwards, the main questions is when will Delek US Holdings Inc find its new trading range? With RSI of 67.52 the stock looks like it is reaching the top end of its value, but with it just executing a new long term agreement with Rangeland Energy to be an anchor shipper through its pipeline, the gains may not be done yet.
Targa Resources Partners LP (NYSE:NGLS) got welcome relief from its recent declining share value as the stock closed up 0.57% or $0.22 at $38.79 on Friday, with more than 2.308 million shares changing hands compared to its three month average trading volume of 0.929 million. The natural gas treatment, processing and sales company has been struggling with the decline in commodity prices so far this year with the stock down 19.14% YTD, compared to the S&P 500 which is up 2.39% over the same period. Despite the fact that the price of most global energy sources are currently falling and not especially popular with investors, Targa Resources Partners LP is starting to look increasingly undervalued with an RSI of 33.57. With a converging MACD and a one year target estimate $53.84, there is some medium to long term upside potential and if commodity prices increase, the stock recover quite quickly.
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