New Lifetime High Today: TC Pipelines (TCP)

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

  • TCP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.6 million.
  • TCP has traded 2,590 shares today.
  • TCP is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in TCP with the Ticky from Trade-Ideas. See the FREE profile for TCP NOW at Trade-Ideas

More details on TCP:

TC PipeLines, LP acquires, owns, and participates in the management of energy infrastructure businesses in North America. The stock currently has a dividend yield of 4.8%. TCP has a PE ratio of 26.9. Currently there is 1 analyst that rates TC Pipelines a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for TC Pipelines has been 184,000 shares per day over the past 30 days. TC Pipelines has a market cap of $4.4 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.38 and a short float of 1.3% with 2.70 days to cover. Shares are up 45.4% year-to-date as of the close of trading on Friday.

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 TC Pipelines as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, TCP's share price has jumped by 49.35%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TCP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The gross profit margin for TC PIPELINES LP is currently very high, coming in at 76.25%. Regardless of TCP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TCP's net profit margin of 38.75% significantly outperformed against the industry.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.4%. Since the same quarter one year prior, revenues slightly dropped by 5.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • TC PIPELINES LP's earnings per share declined by 17.2% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, TC PIPELINES LP reported lower earnings of $2.13 versus $3.27 in the prior year. This year, the market expects an improvement in earnings ($2.59 versus $2.13).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TC PIPELINES LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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

null

More from Markets

3 Things Investors Must Know for Monday

3 Things Investors Must Know for Monday

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric