TransAlta (TAC) Gains But Lags Market: What You Should Know
The latest trading session saw TransAlta (TAC) ending at $6.38, denoting a +0.79% adjustment from its last day's close. This change lagged the S&P 500's 0.89% gain on the day. On the other hand, the Dow registered a gain of 1.03%, and the technology-centric Nasdaq increased by 1.25%.
Shares of the power generation and marketing company witnessed a loss of 7.73% over the previous month, trailing the performance of the Utilities sector with its gain of 3.09% and the S&P 500's gain of 3.56%.
Analysts and investors alike will be keeping a close eye on the performance of TransAlta in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.10, indicating an 87.65% decline compared to the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.51 per share and revenue of $2.08 billion. These totals would mark changes of -67.52% and -16.25%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for TransAlta. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 16.03% higher. Currently, TransAlta is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, TransAlta is presently being traded at a Forward P/E ratio of 12.49. This represents a discount compared to its industry's average Forward P/E of 14.7.
The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 168, positioning it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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TransAlta Corporation (TAC) : Free Stock Analysis Report
