Transcanada (TRP)

Transcanada (TRP)

Postby winston » Thu Nov 15, 2018 10:57 pm

not vested

Stock To Buy: TransCanada (TRP)

The oil bears are back in full force. WTI crude prices have plummeted from $76 in early October to just $56 now. The decline was capped by a punishing 9% decline on Tuesday as rumors of Saudi production changes and potential hedge fund wipeouts led to capitulation selling.

For investors seeking stocks to buy at a discount, this sort of action is great. Traders tend to sell anything related to oil during a major decline in crude. They’re making a big mistake with Transcanada (NYSE:TRP), however.

TRP stock, owner of the Keystone pipeline, along with various natural gas pipelines, energy generation facilities and energy storage units, is now on deep sale.

The company, which has produced 13% compounded annual returns since 2000, is a true North American blue-chip stock. Although its Canadian headquarters makes it less known to American investors, the $35 billion market cap firm is one of the leaders in our energy industry.

And with TRP stock near 52-week lows, it now yields more than 5.4%, with management suggesting that there will be 8% to 10% annual dividend hikes through at least 2022.

Given Transcanada’s exposure to natural gas investors should look past short-term oil weakness and buy TRP stock on this dip. This is particularly true when you consider that the price of natural gas has surged 50% in recent months.

Source: Investor Place
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