TransAlta (TAC) Gains As Market Dips: What You Should Know
TransAlta (TAC) closed at $6.39 in the latest trading session, marking a +1.27% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 0.08%, while the tech-heavy Nasdaq lost 0.42%.
Heading into today, shares of the power generation and marketing company had lost 9.99% over the past month, lagging the Utilities sector's gain of 1.61% and the S&P 500's gain of 2.67% in that time.
Analysts and investors alike will be keeping a close eye on the performance of TransAlta in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.10, reflecting an 87.65% decrease from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.51 per share and a revenue of $2.08 billion, indicating changes of -67.52% and -16.25%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for TransAlta. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 16.03% higher. TransAlta is currently sporting a Zacks Rank of #2 (Buy).
With respect to valuation, TransAlta is currently being traded at a Forward P/E ratio of 12.45. This indicates a discount in contrast to its industry's Forward P/E of 14.95.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 40% of over 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.
To follow TAC in the coming trading sessions, be sure to utilize Zacks.com.
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TransAlta Corporation (TAC) : Free Stock Analysis Report
