TransAltaTransAlta Corp. (NYSE: TAC) is a Canadian energy company that generates and distributes electricity sourced from wind, hydro, solar, coal, and gas. With a bargain price sitting just above $5 today, there’s a lot of value in this pick. An upside is predicted, and financials have been strong in recent fiscal years.

From 2015 to 2019, TransAlta reported revenue growth in all but one year. In the 2019 fiscal year, total revenue was up 4.86%, while gross income increased by 21.69%. The company is profitable with a gross margin of 25.74%, and an EBITDA margin of 32.08%.

With consistent cash flow and bottom-line profitability, TransAlta offers a dividend to investors. The dividend of $0.03 creates a yield of 2.16% today. This makes the stock fairly unique among other bargain picks.

In addition to the dividend, there is likely some growth ahead in the short term. Analysts expect that the stock will reach $7.22 this year, which would be a reasonable upside for buyers at today’s price.

Because TransAlta generates electricity from a diverse range of sources, it has protection from energy pricing volatility in the mid term. Renewables are expected to provide the majority of the world’s electricity in the next 30 years, putting this company in a strong position both today and in the coming decades.

Key Data:

  • 1 Year Price Growth: -14.92%
  • YTD Price Growth: -21.93%
  • 3 Month Price Growth: -33.05%

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.