TransAlta (TAC) Beats Stock Market Upswing: What Investors Need to Know
In the latest trading session, TransAlta (TAC) closed at $6.95, marking a +1.16% move from the previous day. This change outpaced the S&P 500's 0.23% gain on the day. Elsewhere, the Dow gained 0.37%, while the tech-heavy Nasdaq added 0.07%.
The power generation and marketing company's shares have seen a decrease of 15.08% over the last month, not keeping up with the Utilities sector's loss of 5.83% and the S&P 500's gain of 5.3%.
Market participants will be closely following the financial results of TransAlta in its upcoming release. The company plans to announce its earnings on February 23, 2024. The company's upcoming EPS is projected at $0.28, signifying a 162.22% increase compared to the same quarter of the previous year.
It is also important to note the recent changes to analyst estimates for TransAlta. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 7.19% downward. TransAlta presently features a Zacks Rank of #3 (Hold).
In terms of valuation, TransAlta is currently trading at a Forward P/E ratio of 15.98. This indicates a premium in contrast to its industry's Forward P/E of 14.08.
The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 152, finds itself in the bottom 40% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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TransAlta Corporation (TAC) : Free Stock Analysis Report
