TransAlta (TAC) Gains But Lags Market: What You Should Know
In the latest market close, TransAlta (TAC) reached $8.65, with a +0.46% movement compared to the previous day. This change lagged the S&P 500's 0.52% gain on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 0.58%.
The the stock of power generation and marketing company has fallen by 11.05% in the past month, lagging the Utilities sector's loss of 10.66% and the S&P 500's loss of 2.61%.
Analysts and investors alike will be keeping a close eye on the performance of TransAlta in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.27, showcasing a 58.82% upward movement from the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.45 per share and revenue of $2.55 billion. These totals would mark changes of +1912.5% and +11.92%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, TransAlta is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, TransAlta currently has a Forward P/E ratio of 5.92. This expresses a discount compared to the average Forward P/E of 14.46 of its industry.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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TransAlta Corporation (TAC) : Free Stock Analysis Report
