Today TransCanada (TRP) Hits New Lifetime High

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified TransCanada ( TRP) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified TransCanada as such a stock due to the following factors:

  • TRP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $90.1 million.
  • TRP has traded 10,444 shares today.
  • TRP is trading at a new lifetime high.

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More details on TRP:

TransCanada Corporation operates as an energy infrastructure company in North America. The company operates in three segments: Natural Gas Pipelines, Oil Pipelines, and Energy. The stock currently has a dividend yield of 3.3%. TRP has a PE ratio of 23.5. Currently there are 2 analysts that rate TransCanada a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for TransCanada has been 781,800 shares per day over the past 30 days. TransCanada has a market cap of $38.1 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.66 and a short float of 0.5% with 2.30 days to cover. Shares are up 18.5% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates TransCanada as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 11.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • TRANSCANADA CORP has improved earnings per share by 13.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, TRANSCANADA CORP increased its bottom line by earning $2.42 versus $1.84 in the prior year.
  • 49.37% is the gross profit margin for TRANSCANADA CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.74% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $1,119.00 million or 33.05% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.36%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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