Markets
TAC

Should TransAlta (TAC) Be On Your Radar Now?

It can be very difficult to find companies that are both flying under the radar, and still might have potential for gains. Many times, stocks are off investors' radar screens for a reason, though there are some hidden gems that could be worth uncovering by those with a high risk tolerance.

One way to find these underappreciated stocks is by looking at companies that haven't seen their share prices move higher lately, but have observed analysts raising earnings estimates for their stock. This trend could signal that investors haven't quite embraced the rising estimate story yet, but that the potential for a big move higher is definitely there.

One such company that looks well positioned for a solid gain, but has been overlooked by investors lately, is TransAlta CorporationTAC . This Utility - Electric Power stock has actually seen estimates rise over the past month for the current fiscal year by about 25%. But that is not yet reflected in its price, as the stock lost 0.9% over the same time frame.

TRANSALTA CORP Price and Consensus

TRANSALTA CORP Price and Consensus | TRANSALTA CORP Quote

You should not be concerned about the price remaining muted going forward. This year's expected earnings growth over the prior year is significant, which should ultimately translate into price appreciation.

And if this isn't enough, TAC currently carries a Zacks Rank #2 (Buy) which further underscores the potential for its outperformance (See the performance of Zacks' portfolios and strategies here: About Zacks Performance ). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

So if you are looking for a stock flying under-the-radar that is well-equipped to bounce down the road, make sure to consider TransAlta. Solid estimate revisions and an impressive Zacks Rank suggest that better days may be ahead for TAC and that now might be an interesting buying opportunity.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?

Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

TRANSALTA CORP (TAC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TAC

Other Topics

Investing Stocks