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Why It's Worth Investing in TC PipeLines Stock Right Now

Zacks Equity Research
The volumes of natural gas being transported by TC PipeLines' (TCP) midstream assets meet roughly 13% of domestic demand for the commodity.

We are upbeat about TC PipeLines, LP’s TCP prospects and see it as a promising pick for now.

The partnership currently has a Zacks Rank #1 (Strong Buy) and a Value Score of B. Our research shows that stocks with a Value Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) offer the best investment opportunities for investors.

Let’s delve deeper into the factors that make this midstream energy player an attractive investment option.

TC PipeLines has interest in interstate natural gas pipelines, spreading across roughly 6,300 miles. The pipeline network, connecting principal markets, has the capacity to transport roughly 9.4 billion cubic feet of natural gas every day. Notably, the volumes of natural gas being transported by the partnership’s midstream assets meet roughly 13% of domestic demand for the commodity.

It is to be noted that rising demand for clean energy is leading to higher investments in natural-gas fired power plants, replacing coal units in the United States. The move should support additional natural gas production in the domestic market.

Higher production of the commodity will boost demand for pipeline network. The partnership, with its wide base of midstream energy assets, is well placed to capitalize on the favorable business scenario.

Other Stocks to Consider

Other prospective players in the energy space are Shell Midstream Partners LP SHLX, Petroleo Brasileiro S.A. or Petrobras PBR and Denbury Resources Inc. DNR. Shell Midstream Partners and Petrobras sport a Zacks Rank #1, while Denbury carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shell Midstream Partners has an average positive earnings surprise of 7.9% for the last four quarters.

Petrobras’ bottom line beat the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 10.4%.

Denbury beat the Zacks Consensus Estimate for earnings in each of the prior four quarters, the average positive surprise being 162.9%.

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TC PipeLines, LP (TCP) : Free Stock Analysis Report
Shell Midstream Partners, L.P. (SHLX) : Free Stock Analysis Report
Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
Denbury Resources Inc. (DNR) : Free Stock Analysis Report
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