TransCanada Corporation (TSX:TRP)(NYSE:TRP), one of the largest owners and operators of natural gas pipelines and storage facilities in North America, has posted a very disappointing performance in 2015, falling more than 23%, but it has the potential to turn things around and head significantly higher in both the short and long term. Let’s take a look at three of the primary reasons why this could happen and why you should buy the stock today.

1. Its strong financial results could support a quick rebound

On the morning of July 31 TransCanada announced very strong earnings results for its three and six-month periods ending on June 30, but its stock has responded by falling over 13% in the weeks since. Here’s a summary of eight of the most notable statistics from the first half of fiscal 2015 compared with the same period in fiscal 2014:

  1. Comparable net income increased 14.3% to $862 million
  2. Comparable earnings per share increased 14% to $1.22
  3. Revenue increased 7.6% to $5.51 billion
  4. Comparable earnings before interest, taxes, depreciation, and amortization increased 10.9% to $2.9 billion
  5. Funds generated from operations increased 9.7% to $2.21 billion
  6. Delivery volumes decreased 2.4% to 1.95 trillion cubic feet in its NGTL System segment
  7. Delivery volumes increased 2.6% to 864 billion cubic feet in its Canadian Mainline segment
  8. Delivery volumes remained unchanged at 862 billion cubic feet in its ANR segment

2. Its stock trades at inexpensive forward valuations

At today’s levels, TransCanada’s stock trades at just 17.7 times fiscal 2015’s estimated earnings per share of $2.47 and only 16.6 times fiscal 2016’s estimated earnings per share of $2.64, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 21.4 and the industry average multiple of 20.5.

I think TransCanada’s stock could consistently trade at a fair multiple of at least 20, which would place its shares upwards of $49 by the conclusion of fiscal 2015 and upwards of $52 by the conclusion of fiscal 2016, representing upside of more than 12% and 18%, respectively, from current levels.

3. It is both a high-dividend and dividend-growth play

TransCanada pays a quarterly dividend of $0.52 per share, or $2.08 per share annually, giving its stock a 4.8% yield at today’s levels, and this is significantly higher than the industry average yield of 3.1%. It is also very important to note that the company has increased its annual dividend payment for 15 consecutive years, and its strong operational performance could allow this streak to continue for the foreseeable future.

Is there a place for TransCanada in your portfolio?

I think TransCanada Corporation will be one of the top performing energy stocks going forward, because its strong earnings results in the first half could support a near-term rally, because its stock trades at very inexpensive forward valuations, and because it has a high dividend yield with an impressive streak of annual increases, which will continue to attract income investors. All Foolish investors should take a closer look and strongly consider making it a core holding today.

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Let’s not beat around the bush – energy companies performed miserably in 2015. Yet, even though the carnage was widespread, not all energy-related businesses were equally affected.

We've identified an energy company we think offers one of the best growth opportunities around. While this company is largely tied to the production of natural gas, it doesn't actually produce the gas. Instead, it provides the equipment required to get natural gas from the ground to the end user. With diversified operations around the globe, we think it's a rare find in the industry.

We like it so much, we’ve named it as 1 Top Stock for 2016 and Beyond. To find out why, simply enter your email address below to claim your FREE copy of this brand new report, "1 Top Stock for 2016 and Beyond"!

Fool contributor Joseph Solitro has no position in any stocks mentioned.