TAC Should I Buy
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TransAlta Corp (TAC) is not a strong buy at this moment for a beginner, long-term investor with $50,000-$100,000 available for investment. While the company has potential for long-term growth as indicated by analyst upgrades and a positive outlook on power prices, the recent financial performance shows declining net income, EPS, and gross margin. Additionally, there are no strong trading signals or significant positive catalysts to justify immediate action.
The MACD is positive and contracting, suggesting mild bullish momentum. RSI is neutral at 76.215, and moving averages are converging, indicating no clear trend. Key support is at 12.766, and resistance is at 14.016. The stock is trading pre-market at 13.78, close to its resistance level.
Recovery in power prices and potential agreements on the Keephills power plant could be long-term positives.
Declining financial performance in Q4 2025, including a drop in net income, EPS, and gross margin. No recent news or significant trading trends from hedge funds, insiders, or Congress.
In Q4 2025, revenue increased by 2.26% YoY to $542 million. However, net income dropped by 4.62% YoY to -$62 million, EPS fell by 4.55% YoY to -0.21, and gross margin declined by 5.19% YoY to 17.71.
National Bank upgraded TransAlta to Outperform with a C$22 price target, citing long-term growth potential and recovery in power prices. Desjardins recently lowered its price target to C$18 but maintained a Hold rating.
