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Why TransAlta Stock Deserves a Spot in Your Portfolio Right Now

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Key Takeaways

  • TransAlta's Q3 2025 EPS estimate of 12 cents signals a 233.3% year-over-year surge.
  • The company has raised dividends 12 times in five years, with a 1.56% current yield.
  • TAC plans $3.5B investments in renewables to add 1.75 GW capacity and reach a 10 GW pipeline by 2028.

TransAlta (TAC - Free Report) is dedicated to advancing clean electricity by providing customer-centered power solutions. With its emphasis on sustainable energy initiatives, the company is well-positioned to transition toward a low-carbon future. Given its growth opportunities, TAC makes for a solid investment option in the Zacks Utility Electric Power industry.

Let’s focus on the factors that make this Zacks Rank #1 (Strong Buy) company a promising investment pick at the moment.

Growth Projections for TAC

The Zacks Consensus Estimate for TAC’s third-quarter 2025 earnings per share (EPS) is pegged at 12 cents, which implies a massive year-over-year rise of 233.3%.

The Zacks Consensus Estimate for 2026 EPS has increased 17.9% to 33 cents in the past 30 days.

TransAlta’s Return to Shareholders

The company has steadily enhanced shareholder value through regular dividend payments, raising dividends 12 times over the past five years. Its current dividend yield is 1.56%, better than the Zacks S&P 500 Composite's average of 1.15%.

TAC’s Share Repurchase Program

TransAlta is executing a share repurchase program as part of its capital allocation strategy to boost shareholder value. Year to date, the company has bought back 1.9 million shares at an average price of $12.42 per share.

Key Catalysts for TAC’s Expansion

TransAlta is focusing on renewable energy projects designed to address customer-specific needs, including storage solutions. TAC has set a goal to add 1.75 gigawatts (GW) of new renewable capacity by 2028, supported by $3.5 billion in planned investment. The company also targets expanding its development pipeline to 10 GW by 2028, emphasizing customer-centered renewables and storage.

TransAlta Stock Price Performance

In the past six months, TransAlta shares have risen 19.5% compared with the industry’s growth of 7.3%.

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

A few other top-ranked stocks related to the same industry are National Grid (NGG - Free Report) , NiSource, Inc. (NI - Free Report) and Fortis (FTS - Free Report) , each holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

NGG’s (three to five years) earnings growth rate is 8.4%. The Zacks Consensus Estimate for fiscal 2026 EPS stands at $5.25, which suggests a year-over-year rise of 47.1%.

NI’s long-term earnings growth rate is 7.9%. The consensus estimate for 2025 EPS is pegged at $1.88, which indicates a year-over-year improvement of 7.4%.

FTS’ long-term earnings growth rate is 5.1%. The consensus mark for 2025 EPS stands at $2.50, which calls for a year-over-year increase of 4.6%.

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