TransCanada stock: buy or sell?

TRP stock price: $51.46 -0.02% At close on October 18th, 2019

Updated on:
October 18th, 2019

4

TransCanada closed on Oct/18 at $51.46 and stayed stable a neutral -0.02%.

TransCanada Corporation operates as an energy infrastructure company in North America. It operates through Canadian Natural Gas Pipelines, U.

Should I buy TransCanada stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, TransCanada stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean TRP will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is TransCanada stock a buy?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we detected 6 ratings published for TRP stock in the last month.

Is TRP a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-30Bank of American/aBuy
2019-5-29Credit Suisse GroupOutperformNeutral
2019-2-5Evercore ISIn/an/a
2019-1-7Wolfe ResearchOutperformMarket Perform
2019-1-3Goldman Sachs GroupNeutralSell
2019-1-24MacquarieNeutralNeutral

TransCanada stock analysis

Daily outlook

TransCanada shares stayed constant -0.02% to $51.46 on Oct 18th.

TransCanada shares stayed steady -0.02% to $51.46 on Oct 18th. On Sep 30th, TRP hit new all time highs, pushing higher previous ATH of $52.12 recorded on September. New ATHs are usual entry points for many trading setups as there aren't higher resistences. On August TRP price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock.

TRP stock chart (daily)

Weekly outlook

TransCanada shares grew 0.57% this week, ending at $51.46. Late August TRP skyrocketed a wonderful 5.52% in just one week.

TransCanada stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last all-time high TransCanada marked late September. Since late March when SMA20w and SMA40w crossed up, TRP price gained $7.60 per share (17.33%). Since early January when TRP stock price broke up the SMA40w line, it gained $14.29 (38.44%).

TRP stock chart (weekly)

TransCanada stock price history

TransCanada IPO was on September 20th, 1982 at $0.00 per share1. Since then, TRP stock grew a inf%, with an average of inf% per year. If you had invested right after TRP's IPO a $1,000 in TransCanada stock in 1982, it would worth $inf today.

1: Adjusted price after possible price splits or reverse-splits.

TransCanada stock historical price chart

TRP stock reached all-time highs on Sep/30 with a price of $52.33.

TransCanada stock price target is $63.00

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We have 2 price forecasts for TRP stock released in the last 30 days:
TRP stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-30Bank of AmericaRaises Target$64.00$66.003.1%
2019-2-5Evercore ISIInitiatesn/a$60.00-
(in average)$64.00$63.00-2.0%
Moving in a range from $66.00 and $60.00, the price target for TRP stock is $63.00.

Financials and fundamental analysis

Earnings date and Earnings per Share

TransCanada reported beatiful results for 2018-Q4 on February. TransCanada soared Earnings per Share (EPS) by 11.40%, beating experts consensus of $0.70. TransCanada posted $0.78.
TRP earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.62n/a
2017-Q3-n/a0.74n/a
2017-Q4-n/a0.89n/a
2018-Q12018-04-270.640.7821.9%
2018-Q22018-08-020.580.6613.8%
2018-Q32018-11-010.590.7628.8%
2018-Q42019-02-140.70.7811.4%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw a slightly good increase of 1.71% to $13,679.00 million dollars. When comparing 2018 vs 2017, in the same way, profit margin (that is, the net income divided by revenues) gained a 3.59% to 27.06%.

TRP annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$8,800 M-$1,790 M20.3%-
2014$8,764 M-0.41%$1,583 M18.1%-11.54%
2015$11,300 M28.93%$-1,146.00 M-10.1%-172.38%
2016$12,505 M10.66%$233 M1.9%-120.33%
2017$13,449 M7.55%$3,157 M23.5%1,254.94%
2018$13,679 M1.71%$3,702 M27.1%17.26%

Quarterly financial results

TransCanada posted $3,904.00 M in revenues for 2018-Q4, a 23.70% improvement compared to previous quarter. Reported quarter earnings marked $1,133.00 million with a profit margin of 29.02%. Profit margin decreased a -1.68% compared to previous quarter when profit margin was 30.70%. When comparing sales to same quarter last year, TransCanada sales marked an amazing gain and boosted a 35.74%.
TRP quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$3,350 M-$920 M27.5%-
2017-Q3$2,614 M-21.98%$526 M20.1%-42.87%
2017-Q4$2,876 M10.05%$716 M24.9%36.31%
2018-Q1$3,424 M19.05%$774 M22.6%8.03%
2018-Q2$3,195 M-6.69%$826 M25.9%6.72%
2018-Q3$3,156 M-1.22%$969 M30.7%17.31%
2018-Q4$3,904 M23.70%$1,133 M29.0%16.92%
2019-Q1$3,487 M-10.68%$1,045 M30.0%-7.77%

TransCanada ownership

When you are planning to invest in a stock, it's always worth to have a look its ownership structure.

TransCanada shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.05% of all shares.

In case of TransCanada stock, 68.90% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for TRP stock account 0.00%, no big difference from last month.

For a better context understanding, the next table shows ownership data compared to other related stocks:

TRP
Market cap$47.8 B
Total shares929.0 M
Float shares928.1 M
  - Institutional holdings (%)68.9%
  - Insider holdings (%)0.1%
Shares in short selling0.0%

TransCanada summary

Friday, October 18th, 2019
Open$51.59
Close$51.46
Day range$51.29 - $51.69
Previous close$51.47
Session gain-0.02%
Average true range$0.67
50d mov avg$50.09
100d mov avg$49.41
200d mov avg$46.47
Daily pattern
Weekly pattern lt06a

TransCanada performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. In the following table, we compare TransCanada to :
Stock3m6m12m
TRPTransCanada2.96%12.53%32.63%

TransCanada competitors

Unfortunately, we could not find any public company that could be defined as TransCanada competitor. This doesn't mean TransCanada does not have any competitor in the market, it's just we could not detected it.

    Latest TransCanada stock news