Stock Analysis & Ideas

Here’s Why TC Energy (TSE:TRP) Stock is Worth Your Attention

Story Highlights

TC Energy looks well-poised to maintain its bull run on the bourses on the back of investments in solid growth projects and strength across business segments. Further, TRP also provides an impressive dividend yield of 5.8%.

Alberta-based TC Energy Corporation (TSE:TRP) (NYSE:TRP) has been a treat to watch this year. The stock is up 8.5% so far in 2022. The company has been witnessing strong utilization and reliability across its assets. TC Energy has also been riding on high demand levels for natural gas in North America. Furthermore, rising requirements for energy security are supporting growth in the global LNG market.

With a market cap of C$47.69 billion, TC Energy is a prominent energy infrastructure provider in North America. Leveraging its wide network of pipelines in Canada, the United States, and Mexico, the company mainly focuses on natural gas transmission.

Let’s take a deeper look at the factors that are driving the upside in TC Energy stock.

Major Growth Catalysts

TC Energy can be credited with an impressive record of beating earnings estimates. The energy infrastructure company has posted earnings beats in all trailing quarters, except two, in the last couple of years. If the trend persists, it can provide strong support to its share price performance in the coming quarters.

The company delivered strong financial results in the last reported second quarter of 2022. The top line was supported by the robust performance of all business segments.

In a positive development, TC Energy has been able to reach an important milestone with respect to the Coastal GasLink Limited Partnership. TRP has signed revised agreements with LNG Canada to resolve cost-related concerns. Notably, 70% of the 670-kilometer Coastal GasLink project is already complete, and mechanical in-service is estimated by 2023 end.

Encouragingly, the energy infrastructure operator has progressed on nearly 3.3 Bcf/d of LNG-linked projects in its U.S. Natural Gas business during the first six months of 2022. The company’s management is also upbeat about Bruce Power’s operational performance during the last reported quarter.

Is TC Energy Stock a Good Buy?

TC Energy stock seems like a decent option to grab now. According to TipRanks, the Street has a Moderate Buy consensus rating on the stock, which is based on five Buys and seven Holds.

Further, TipRanks data shows that financial bloggers are 100% Bullish on TRP stock, in comparison to the sector average of 66%.

Final Thoughts

Strong growth projects and robust performances from the business segments should help TC Energy to maintain its solid momentum in the share price. The company is also aiming to exploit market opportunities by expanding its natural gas pipeline network. Adding to its appeal, TC Energy’s dividend yield of 5.8%, exceeds the sector average of 1.64%. Finally, TRP stock’s average price target of C$71.16, implies a 12.6% upside potential from the current levels.

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