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Why the Market Dipped But TransAlta (TAC) Gained Today

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TransAlta (TAC - Free Report) closed at $7.77 in the latest trading session, marking a +0.65% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.17%. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq increased by 0.27%.

The power generation and marketing company's stock has dropped by 15.63% in the past month, falling short of the Utilities sector's loss of 12.93% and the S&P 500's loss of 3.95%.

The investment community will be closely monitoring the performance of TransAlta in its forthcoming earnings report. The company is scheduled to release its earnings on November 7, 2023. The company's earnings per share (EPS) are projected to be $0.26, reflecting a 52.94% increase from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $1.44 per share and a revenue of $2.55 billion, demonstrating changes of +1900% and +11.92%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for TransAlta. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

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, 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 has remained steady. TransAlta currently has a Zacks Rank of #3 (Hold).

In terms of valuation, TransAlta is currently trading at a Forward P/E ratio of 5.37. This valuation marks a discount compared to its industry's average Forward P/E of 14.37.

The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 27% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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