Stock of the Day

April 7, 2020

TC Energy (TRP)

$44.94
-$0.60 (-1.3%)
Market Cap: $47.32B

About TC Energy

TC Energy Corporation operates as an energy infrastructure company in North America. It operates through five segments: Canadian Natural Gas Pipelines; U.S. Natural Gas Pipelines; Mexico Natural Gas Pipelines; Liquids Pipelines; and Power and Energy Solutions. The company builds and operates a network of 93,600 kilometers of natural gas pipelines, which transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, LNG export terminals, and other businesses. It also has regulated natural gas storage facilities with a total working gas capacity of 532 billion cubic feet. In addition, it has approximately 4,900 kilometers of liquids pipeline system that connects Alberta crude oil pipeline to refining markets in Illinois, Oklahoma, Texas, and the United States Gulf Coast. Further, the company owns or has interests in power generation facilities with approximately 4,600 megawatts; and owns and operates approximately 118 billion cubic feet of non-regulated natural gas storage facilities in in Alberta, Ontario, Québec, and New Brunswick. The company was formerly known as TransCanada Corporation and changed its name to TC Energy Corporation in May 2019. TC Energy Corporation was founded in 1951 and is headquartered in Calgary, Canada.

TC Energy Bull Case

Here are some ways that investors could benefit from investing in TC Energy Co.:

  • Recent upgrades in stock ratings, including a shift from "hold" to "buy," indicate growing confidence among analysts regarding TC Energy Co.'s future performance.
  • The company has a strong market capitalization of approximately $48.19 billion, suggesting stability and a solid position in the market.
  • Current stock price is $46.38, which is near its 52-week high of $50.37, indicating potential for further growth.
  • Institutional investors own 83.13% of the company's stock, reflecting strong institutional confidence and support for TC Energy Co.
  • Recent increases in holdings by major investors, such as CIBC Asset Management and Connor Clark & Lunn Investment Management, suggest positive sentiment and potential for future appreciation.

TC Energy Bear Case

Investors should be bearish about investing in TC Energy Co. for these reasons:

  • The company has a relatively high debt-to-equity ratio of 1.78, which may indicate higher financial risk and potential challenges in managing debt levels.
  • Despite recent upgrades, the average price target from analysts remains at $62.00, suggesting limited upside potential compared to the current stock price.
  • TC Energy Co. has experienced fluctuations in stock performance, with a 52-week low of $31.83, indicating volatility that could concern risk-averse investors.
  • Some analysts have issued sell ratings, highlighting differing opinions on the stock's future performance and creating uncertainty for potential investors.
  • The company's price-to-earnings (P/E) ratio of 14.31, while not excessively high, may suggest that the stock is fairly valued, limiting immediate investment appeal.

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