Transalta Transalta Corp. (NYSE: TAC) is an energy company focused on clean generation using resources like wind, solar, hydro, and gas. Founded in 1909, the company is continuing to diversify to reduce its reliance on coal energy generation.

Transalta is historically a strong revenue performer. In its most recent complete fiscal year, the company generated $2.29 billion in revenue, an increase of 4.86% year-over-year. Gross income increased by 21% in the previous fiscal year, contributing to a margin of 25.74%. The company’s EBITDA margin is strong at 32.08%.

2020 data is likely to be weaker, due to market constraints caused by the Coronavirus Pandemic. Earnings have underperformed for three consecutive quarters, but they are ready to recover along with the wider North American economy. Earnings are expected to grow by 73.82% over the next year.

The stock currently trades at around 87% below its estimated fair market value, which reflects the company’s recent poor fiscal performance. With the earnings recovery likely to come, analysts see this stock hitting an average target of $8.59. The highest prediction on FactSet pins a price target of $12.44 to this stock, suggesting a bigger upside is available for patient investors.

For its involvement in clean energy, a bargain price, and a likely upside, this is one of the best alternative stock picks at the beginning of 2021.

Key Data:

  • 1 Year Price Growth: 50%
  • YTD Price Growth: 03%
  • 3 Month Price Growth: 92%

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.