Recs

3

5-Star Stocks Poised to Pop: TransCanada

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, energy infrastructure company TransCanada (NYSE: TRP  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at TransCanada's business and see what CAPS investors are saying about the stock right now.

TransCanada facts

Headquarters (Founded)

Calgary, Canada (1951)

Market Cap

$27.5 billion

Industry

Oil and gas storage and transportation

Trailing-12-Month Revenue

$8.16 billion

Management

CEO Russell Girling (since 2010)

CFO Donald Marchand (since 2010)

Return on Equity (Average, Past 3 Years)

9%

Cash/Debt

$1.6 billion / $19.77 billion

Dividend Yield

4.1%

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 371 members who have rated TransCanada believe the stock will outperform the S&P 500 going forward. These bulls include brewsterfl1 and MatthewCHoffman.  

A few months ago, brewsterfl1 nicely summed up the TransCanada bull case:

New pipeline construction along with US acquisitions make for a quality North America distribution platform. Now if only we had a use for all that natural gas. Pays a nice dividend too!

TransCanada even boasts a rather robust three-year average operating margin of 33.5%. That's much higher than that of industry peers like Enterprise Products Partners (NYSE: EPD  ) (6.1%), Enbridge (NYSE: ENB  ) (9.9%), and Kinder Morgan Energy Partners (NYSE: KMP  ) (19%).

CAPS member MatthewCHoffman elaborates on the TransCanada bull case:

This stock is a winner. The company is a vital oil and gas supply service with massive pipeline assets. Very conservatively managed. It is [likely] to get approval to build at the Keystone XL pipelines from the Canadian tarsands (second biggest deposit of oil on Earth outside of Saudi Arabia) to the US. ... [A]nd as a make-work project it will be irresistible even to a liberal president like Barack Obama.

What do you think about TransCanada, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track TransCanada? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1563967, ~/Articles/ArticleHandler.aspx, 12/21/2014 12:38:07 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Brian Pacampara
TMFEZMagic

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

Today's Market

updated 1 day ago Sponsored by:
DOW 17,804.80 26.65 0.15%
S&P 500 2,070.65 9.42 0.46%
NASD 4,765.38 16.98 0.36%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/19/2014 4:04 PM
TRP $47.68 Up +0.68 +1.45%
TransCanada CAPS Rating: ***
ENB $49.78 Up +1.45 +3.00%
Enbridge, Inc. (US… CAPS Rating: ****
EPD $34.13 Down -0.42 -1.22%
Enterprise Product… CAPS Rating: *****
KMP $0.00 Down +0.00 +0.00%
Kinder Morgan Ener… CAPS Rating: *****

Advertisement