Continuing our review of the energy sectors, we now turn our attention to the pipeline and infrastructure sub-sector. To accomplish this task, we have assembled a custom pipeline matrix for 31 of the largest positions across North America. After spending the early part of the week analyzing major oil companies, particularly Exxon Mobil, and examining the oil service sector through the lens of Weatherford, we will today highlight TC Energy as a representative of the pipeline sector. TC Energy Corporation, headquartered in Calgary, Alberta, is a leading North American energy company that manages a vast infrastructure network across Canada, the U.S., and Mexico. Its operations encompass over 92,600 kilometers of natural gas pipelines, which supply more than 25% of North America's demand, alongside 4,900 kilometers of oil pipelines that transport significant volumes of crude oil. As is typical of our analysis, we first look at the relative strength of the shares, where we find TRP.TO rising within the SIA S&P/TSX 60 Large Cap Index Report to position #17, having gained 10 spots in the past month and 25 spots in the past quarter. This upward movement has allowed investors to capture impressive gains of 12.05% in the past month, 23.83% in the last quarter, and a healthy 43.93% year to date. To compare TC Energy against its sub-sector peer group, we turn to the custom SIA Pipeline Matrix that we developed to monitor the energy infrastructure space. Here, we observe several strong holdings, many of which have yielded remarkable gains year to date. For instance, Targa Resources, one of North America's largest energy transporters, has produced an astonishing 92.67% gain so far this year, while DT Midstream has achieved a notable 69.31% increase. This performance suggests that TC Energy also has substantial potential for growth. Currently positioned at #10 on our custom matrix, TC Energy has risen 8 spots within its peer group and boasts a perfect SMAX score of 10. This serves as a secondary indicator for SIA practitioners, ensuring relative performance against all other asset classes. In summary, the relative strength analysis indicates that TC Energy is a rising star compared to other alternatives within the TSX 60 Index, the custom sub-sector pipeline matrix, and in relation to other asset class alternatives.
Turning next to the SIA Point and Figure (P&F) chart, we find a very constructive pattern that initially broke out at $48.24. This bullish catapult developed in mid-summer and has not looked back since, smoothly cruising through resistance levels at $51.19 and $56.52, which are now seen as supportive levels. To establish the next levels of resistance, we examine previous bands of consolidation and identify $74.58 and $85.67 as significant markers. While these levels may seem ambitious for a seemingly stable pipeline company, we encourage you to review the chart of Targa Resources or any of the top-ranked names included in the SIA Custom Pipeline Matrix presented above. This will provide insight into just how far these energy transporters have been rallying, underscoring the potential for similar performance in TC Energy.
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