TransAlta (TAC) Stock Slides as Market Rises: Facts to Know Before You Trade
The latest trading session saw TransAlta (TAC) ending at $8.05, denoting a -0.86% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.81%. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq added 1.35%.
Heading into today, shares of the power generation and marketing company had lost 14.17% over the past month, lagging the Utilities sector's loss of 8.26% and the S&P 500's loss of 6.19% in that time.
The upcoming earnings release of TransAlta will be of great interest to investors. 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, 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.
It is also important to note the recent changes to analyst estimates for TransAlta. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate remained stagnant. As of now, TransAlta holds a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that TransAlta has a Forward P/E ratio of 5.59 right now. This denotes a discount relative to the industry's average Forward P/E of 13.99.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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
