TransAlta (TAC) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, TransAlta (TAC) closed at $7.83, marking a -1.51% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.07%.
The power generation and marketing company's stock has by 0% in the past month, exceeding the Utilities sector's loss of 2.1% and lagging the S&P 500's gain of 3.98%.
Analysts and investors alike will be keeping a close eye on the performance of TransAlta in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.28, marking a 162.22% rise compared to the same quarter of the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 sporting a Zacks Rank of #3 (Hold).
In terms of valuation, TransAlta is currently trading at a Forward P/E ratio of 17.16. This valuation marks a premium compared to its industry's average Forward P/E of 15.15.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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TransAlta Corporation (TAC) : Free Stock Analysis Report
