TransAlta (TAC) Gains As Market Dips: What You Should Know
TransAlta (TAC) closed the most recent trading day at $9.27, moving +0.98% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.47%. At the same time, the Dow lost 1.14%, and the tech-heavy Nasdaq lost 1.57%.
Prior to today's trading, shares of the power generation and marketing company had lost 6.42% over the past month. This has lagged the Utilities sector's loss of 0.07% and the S&P 500's loss of 1.43% in that time.
Wall Street will be looking for positivity from TransAlta as it approaches its next earnings report date. On that day, TransAlta is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 58.82%.
Looking at the full year, our 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.
It is also important to note the recent changes to analyst estimates for TransAlta. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TransAlta is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that TransAlta has a Forward P/E ratio of 6.32 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.77.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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TransAlta Corporation (TAC) : Free Stock Analysis Report
