TransaltaTransalta Corp. (NYSE: TAC) is frequently seen as one of the best alternative investments for clean energy. A bargain stock and a dividend combine to make it a compelling pick. This company specializes in the production of electricity through clean sources like natural gas, hydro, wind, and solar. It operates some coal plants in the U.S. and Canada but is expected to phase these out in the coming years as alternative production methods become more affordable and reliable.

Earnings in the previous quarter were down from what analysts expected, but the company is expected to recover quickly as it focuses more on affordable renewable energy. The economic damage caused by the Coronavirus will also lessen in the coming months, which should help Transalta to return to profitability.

For now, analysts still see an upside in the stock as it is currently undervalued when considering the fundamentals of the business. An average target price of $10.20 and a high-end target price of $13.63 suggest gains for investors who buy now. With a dividend producing a 1.54% yield at today’s price, this is also a compelling pick for bargain stock portfolios that typically lack income components.

Key Data:

  • 1 Year Price Growth: 25%
  • YTD Price Growth: 48%
  • 3 Month Price Growth: 63%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.