TransAltaWhen we last looked at TransAlta Corp. (NYSE: TAC) it had signs of momentum. Three months later, it has grown 6.87%, and there could be more to come. TransAlta is a utility company focused on the distribution and generation of electricity. It generates clean energy from its gas, wind, solar, and hydro facilities. It operates in its native Canada, as well as in the United States and Australia.

The company is a strong revenue performer, having generated top line growth for two consecutive fiscal years. In 2019, revenue was up by 4.86%, while gross income was up by 21.69%. Operating efficiency helped the company to finish last year with a gross profit margin of 25.74%. Its profitability goes right down to the EBITDA margin of 32.08%.

A reliable revenue stream and strong profitability allow this company to provide a dividend with a yield of 1.99% today. Reliable dividends are rare in bargain alternative energy stocks, making TransAlta an outlier and a strong income option.

Governments around the world are focused on reducing carbon emissions. TransAlta’s heavy investment into clean energy generation puts it into a strong position moving forward. Growth this year is likely to continue, with an average target of $7.36 making it a solid pick for bargain hunters.

Key Data:

  • 1 Year Price Growth: -0.65%
  • YTD Price Growth: -15.22%
  • 3 Month Price Growth: 87%

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.