TransAlta (TAC) Stock Falls Amid Market Uptick: What Investors Need to Know
TransAlta (TAC) closed at $7.62 in the latest trading session, marking a -1.93% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.73% for the day. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.93%.
Shares of the power generation and marketing company have depreciated by 15.36% over the course of the past month, underperforming the Utilities sector's loss of 12.39% and the S&P 500's loss of 2.29%.
Investors will be eagerly watching for the performance of TransAlta in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 7, 2023. The company is forecasted to report an EPS of $0.26, showcasing a 52.94% upward movement from the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.44 per share and a revenue of $2.55 billion, indicating changes of +1900% and +11.92%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for TransAlta. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 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 witnessed a 1.15% decrease. As of now, TransAlta holds a Zacks Rank of #3 (Hold).
Looking at valuation, TransAlta is presently trading at a Forward P/E ratio of 5.41. This represents a discount compared to its industry's average Forward P/E of 14.35.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 25% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
TransAlta Corporation (TAC) : Free Stock Analysis Report
