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TRP, ENB: Canadian Midstream Companies Are in the Red in 2018

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Price performance

TransCanada (TRP) and Enbridge (ENB) have fallen 16.0% and 19.0%, respectively, so far in 2018. The stocks underperformed the Energy Select Sector SPDR ETF (XLE), which is up 4.0% year-to-date. Kinder Morgan (KMI) has fallen 10.0%, and Kinder Morgan Canada (KML.TO) has fallen 12.0% so far in 2018. In comparison, crude oil prices are up ~11.0% year-to-date.

You can learn more about the latest factors impacting crude oil prices in Crude Oil Futures Might Extend the Recent Rally. The chart above compares the year-to-date performance numbers for TransCanada, Enbridge, and Kinder Morgan Canada.

Moving averages

Enbridge (ENB) is trading 3.0% above its 50-day moving average and 9.0% below its 200-day moving average. Enbridge’s 50-day average may act as a support for the stock, whereas its 200-day average may act as a near-term resistance for the stock. Enbridge’s 50-day moving average hasn’t crossed above the stock’s 200-day average in the last year.

TransCanada is trading 3.0% below its 50-day moving average and 10.0% below its 200-day moving average. TransCanada’s 50-day average may act as a near-term resistance for the stock. The stock’s 50-day average fell below its 200-day level in January.

Series snapshot

In this series, we’ll compare the dividend yield, growth, changes in short interest, and institutional ownership in TransCanada and Enbridge. Lastly, we’ll compare Wall Street analysts’ recommendations for the two stocks.

Let’s start with a comparison of the yields and dividends for Enbridge and TransCanada.

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