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Here's Why You Should Add TransAlta Stock to Your Portfolio Now
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Key Takeaways
TAC shares jumped 32.5% in three months, outperforming industry decline of 0.6%.
The company targets 1.75 GW in new renewables by 2028, investing $3.5B in growth projects.
TAC raised dividends 12 times in 5 years and repurchased 1.9M shares at $12.42 average YTD.
TransAlta (TAC - Free Report) is committed to being a leader in clean electricity by delivering customer-centered power solutions. The company is well-positioned to shift toward a low-carbon future, owing to its focus on sustainable energy projects. Given its growth opportunities, TAC makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a promising investment pick at the moment.
TAC’s Growth Projections
The Zacks Consensus Estimate for 2025 earnings per share (EPS) has remained unchanged in the past 30 days at 35 cents.
The Zacks Consensus Estimate for 2026 EPS has increased 12% to 28 cents in the past 30 days.
TAC’s Solvency
The times interest earned (TIE) ratio is a solvency ratio. It is used to measure how well the company can cover its interest obligations. The TIE ratio at the end of first-quarter 2025 was 1.3, which being greater than one indicates that TransAlta is in a good position to meet its interest obligations.
TAC’s Dividend History
The company has been consistently increasing the value of its stockholders through regular dividends. TAC has raised dividends 12 times in the past five years. Its current dividend yield is 1.65%, better than the Zacks S&P 500 Composite's average of 1.19%.
TAC’s Share Repurchase Program
TransAlta is actively pursuing a share repurchase program as part of its capital allocation strategy to enhance shareholder value. The company has repurchased 1.9 million shares year to date at an average cost of $12.42 per share.
TAC’s Growth Strategy
TransAlta is prioritizing the development of renewable energy projects tailored to meet the specific needs of customers, including storage solutions. TAC has set targets to deliver 1.75 gigawatt (GW) of incremental renewables capacity by the end of 2028, with a targeted investment of $3.5 billion. The company aims to expand its development pipeline to 10 GW by 2028, focusing on customer-centered renewables and storage.
TAC’s Stock Price Performance
In the past three months, TransAlta’s shares have risen 32.5% against the industry’s decline of 0.6%.
NI’s long-term (three to five years) earnings growth rate is 7.88%. The company delivered an average earnings surprise of 24% in the last four quarters.
NRG’s long-term earnings growth rate is 16.2%. The Zacks Consensus Estimate for NRG’s 2025 EPS implies a year-over-year improvement of 17%.
CenterPoint Energy’s long-term earnings growth rate is 7.76%. The Zacks Consensus Estimate for CNP’s 2025 EPS implies a year-over-year increase of 8%.
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Here's Why You Should Add TransAlta Stock to Your Portfolio Now
Key Takeaways
TransAlta (TAC - Free Report) is committed to being a leader in clean electricity by delivering customer-centered power solutions. The company is well-positioned to shift toward a low-carbon future, owing to its focus on sustainable energy projects. Given its growth opportunities, TAC makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a promising investment pick at the moment.
TAC’s Growth Projections
The Zacks Consensus Estimate for 2025 earnings per share (EPS) has remained unchanged in the past 30 days at 35 cents.
The Zacks Consensus Estimate for 2026 EPS has increased 12% to 28 cents in the past 30 days.
TAC’s Solvency
The times interest earned (TIE) ratio is a solvency ratio. It is used to measure how well the company can cover its interest obligations. The TIE ratio at the end of first-quarter 2025 was 1.3, which being greater than one indicates that TransAlta is in a good position to meet its interest obligations.
TAC’s Dividend History
The company has been consistently increasing the value of its stockholders through regular dividends. TAC has raised dividends 12 times in the past five years. Its current dividend yield is 1.65%, better than the Zacks S&P 500 Composite's average of 1.19%.
TAC’s Share Repurchase Program
TransAlta is actively pursuing a share repurchase program as part of its capital allocation strategy to enhance shareholder value. The company has repurchased 1.9 million shares year to date at an average cost of $12.42 per share.
TAC’s Growth Strategy
TransAlta is prioritizing the development of renewable energy projects tailored to meet the specific needs of customers, including storage solutions. TAC has set targets to deliver 1.75 gigawatt (GW) of incremental renewables capacity by the end of 2028, with a targeted investment of $3.5 billion. The company aims to expand its development pipeline to 10 GW by 2028, focusing on customer-centered renewables and storage.
TAC’s Stock Price Performance
In the past three months, TransAlta’s shares have risen 32.5% against the industry’s decline of 0.6%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are NiSource (NI - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and NRG Energy (NRG - Free Report) and CenterPoint Energy (CNP - Free Report) , both holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NI’s long-term (three to five years) earnings growth rate is 7.88%. The company delivered an average earnings surprise of 24% in the last four quarters.
NRG’s long-term earnings growth rate is 16.2%. The Zacks Consensus Estimate for NRG’s 2025 EPS implies a year-over-year improvement of 17%.
CenterPoint Energy’s long-term earnings growth rate is 7.76%. The Zacks Consensus Estimate for CNP’s 2025 EPS implies a year-over-year increase of 8%.