TransCanada Corporation (NYSE:TRP) — This energy infrastructure company focuses mainly on natural gas and oil pipelines. It is the primary developer and manager of the Keystone pipeline system, and it also manages non-regulated facilities in Alberta, Canada.
In January, the U.S. State Department rejected TRP’s application to build Keystone XL, which would carry heavy crude from the Alberta oil sands and Bakken Shale to Gulf of Mexico refiners. President Obama did approve the southern half of the line from Cushing, Okla., to the Gulf of Mexico, saving months of delays. And the pressure to construct more lines is high since the incoming/outgoing imbalance of crude at the Cushing center has become critical.
Earnings for 2012 and 2013 are expected to be $2.35 and $2.70, respectively, but would improve significantly if the overall Keystone XL project is approved.
Technically the stock is in a bull channel with prices hugging the 50-day moving average. TRP’s overall price objective is $50-plus, depending on the political swings in the fall, and the stock pays a dividend of $1.76 (4% annual yield). Buy TRP at market.