Targa Resources Partners LP (NGLS) and USG Corporation (USG) among Pimco’s Top Picks


In a conversation with CNBC’s Rebecca Quick, Mark Kiesel, Deputy CIO of Pimco, shared some top stocks to invest in, among which is Targa Resources Partners LP (NASDAQ:NGLS) and USG Corporation (NASDAQ:USG) as two stocks endorsed by Kiesel, that can be owned.


Targa Resources Partners LP (NASDAQ:NGLS)

Explaining his rationale for the energy company, Targa Resources Partners LP (NASDAQ:NGLS), Kiesel said:

“We have called it a game changer. A revolution. Energy production is growing at 8 to 10% across the country. […] Targa is growing at 20 to 30%.”

He further mentioned that there are several companies where energy production has been declining as well. Pimco, however, has been watching a few companies that have shown a production growth of 15 to 20%.  According to Kiesel, Targa Resources Partners LP (NASDAQ:NGLS) is showing a 20 to 30% growth, therefore is a fabulous company and qualifies amongst the favorites in stock picks.

USG Corporation (NASDAQ:USG)

Answering Quick’s question about USG Corporation (NASDAQ:USG), which is in the building materials industry, Kiesel explained that the housing industry is seeing a shift from ‘home building’ to ‘remodeling’ of homes.  He further said that USG is one of the few companies that is raising its prices annually by about 10% and at the same time has also been showing a 9% annual growth. Prices going up in double digits and volume growth also increasing at a similar rate represents a unique and rare situation. Kiesel was hence very optimistic about the USG Corporation (NASDAQ:USG)’s stock. He also felt that the company has got itself consolidated very well and added that the new trend of remodeling would benefit USG and help the company put up a fine performance.

Jim Simons‘ Renaissance Technologies is one of the hedge funds that has a stake in Targa Resources Partners LP (NASDAQ:NGLS), with 297,447 shares in its portfolio. Richard Driehaus, managed by Driehaus Capital stands of the second spot holding 116,288 shares with a reported value of $6.54 million.

Warren Buffett‘s Berkshire Hathaway, has 1.07% of its portfolio invested in USG Corporation (NASDAQ:USG), amassing 34.89 million shares.

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