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TransAlta (TAC) Stock Moves -0.11%: What You Should Know

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TransAlta (TAC - Free Report) closed the most recent trading day at $9.36, moving -0.11% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.94%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 1.53%.

Heading into today, shares of the power generation and marketing company had lost 3.1% over the past month, lagging the Utilities sector's gain of 1.84% and the S&P 500's gain of 1.85% in that time.

Investors will be hoping for strength from TransAlta as it approaches its next earnings release. In that report, analysts expect TransAlta to post earnings of $0.27 per share. This would mark year-over-year growth of 58.82%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.45 per share and revenue of $2.55 billion, which would represent changes of +1912.5% and +11.92%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TransAlta. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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).

Digging into valuation, TransAlta currently has a Forward P/E ratio of 6.45. For comparison, its industry has an average Forward P/E of 16.22, which means TransAlta is trading at a discount to the group.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% 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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