TransAltaRenewable energy stocks are becoming more attractive as consumers and governments continue to ramp up their purchasing from clean sources. TransAlta Corporation (NYSE: TAC) is currently one of the top renewable stocks to consider, with a bargain price and strong fundamentals behind it.

TransAlta isn’t strictly a renewable company. It generates electricity through wind, hydro, gas, and coal. However, it is the owner of TransAlta Renewables, a subsidiary that exclusively generates from green sources. Growth in wind and solar will have an impact on this company’s bottom line in the coming years.

Unlike many of the pureplay renewable stocks, TransAlta is profitable and it pays a dividend. The yield today is 1.79%, making it a good addition to an alternative portfolio that lacks dividend picks.  The company operates with a gross profit margin of 22.18%, which is a refreshing change from many similar bargain stocks that operate in negative territory.

There’s an average target price of $8.56 on the stock today, but this could be revised depending on earnings growth throughout 2020. Renewables are the future of electricity in all developed nations. The fact that this company is diversified in both traditional and renewable sources puts it in a middle ground that will appeal to cautious investors.

Key Data:

  • 1 Year Price Growth: 47%
  • YTD Price Growth: 40%
  • 3 Month Price Growth: 89%

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.