Stock of the Day

TC Energy (TRP)

$61.59

+$1.92 (+3.2%)

Market Cap: $59.67B

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.:

• TC Energy Co. is currently trading at $61.59, which is significantly below the consensus price target of $89.00 set by analysts, suggesting substantial upside potential for investors who believe the market is undervaluing the company's infrastructure assets.
• The company recently advanced its Coastal GasLink Phase 2 expansion plans following the final investment decision by LNG Canada, a move that nearly doubles export capacity and positions TC Energy Co. to capture long-term revenue growth from increasing global natural gas demand.
• TC Energy Co. offers a compelling dividend yield of 4.25%, providing a steady income stream for investors, supported by a recent quarterly dividend announcement of C$0.88 per share that reflects the company's commitment to returning capital to shareholders.
• Recent institutional activity shows strong confidence, with major investors like Canada Pension Plan Investment Board and GQG Partners LLC establishing new positions worth over $1 billion each in the second quarter, indicating that large-scale capital is accumulating in the stock.
• Analyst sentiment has improved recently, with Goldman Sachs upgrading the stock to a "Buy" rating with a $71.00 target price and TD Securities also upgrading to "Buy," reflecting a broader consensus of "Moderate Buy" that highlights the company's strong fundamental performance.

TC Energy Bear Case

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

• Short interest in TC Energy Co. surged by 64.0% in September to 56,768,076 shares, representing 5.7% of the float, which indicates a significant increase in bearish sentiment and potential downward pressure on the stock price as short sellers bet against the company.
• The company's debt-to-equity ratio stands at 1.64, a level that suggests a high degree of financial leverage, which can increase financial risk and reduce flexibility during periods of economic uncertainty or rising interest rates.
• TC Energy Co. is in the process of selling its Mexican pipeline for $560 million, a strategic divestiture that may signal a retreat from certain international markets and could impact the company's overall revenue diversification and growth trajectory.
• The stock's 200-day simple moving average is $64.76, which is above the current price of $61.59, indicating that the stock is trading below its long-term trend and may be facing technical resistance that could limit near-term gains.
• Despite beating earnings estimates in the last quarter, TC Energy Co.'s EPS of $0.68 was lower than the $0.82 reported in the same period last year, suggesting a year-over-year decline in profitability that may concern investors focused on consistent earnings growth.

Recent News

• TC Energy to host third quarter 2026 conference call on Nov. 5 (financialpost.com)
• TC Energy to host third quarter 2026 conference call on Nov. 5 (globenewswire.com)
• TC Energy finalizes indigenous investment plan for Coastal GasLink (seekingalpha.com)
• TC Energy Closes Agreement With Five First Nations for Economic Interest in Coastal GasLink (finance.yahoo.com)
• TC Energy Closes Indigenous Investment Deal for Coastal GasLink (finance.yahoo.com)
• TC Energy announces Indigenous investment in Coastal GasLink (financialpost.com)