While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of ...

TransAlta Corporation (TAC) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, TAC's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross." A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages ...

TransAlta (TAC) closed the last trading session at $8.05, gaining 9.2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $13.12 indicates a 63% upside potential. The average comprises seven short-term price targets ranging from a low of $10.08 to a high of $19.18, with a standard deviation of $3.64. While the lowest estimate indicates an increase of 25.2% from the current price level ...

Core Insights - Taboola reported strong financial performance for Q2 2024, with revenues of $428.2 million, a 29% year-over-year increase, and a significant reduction in net loss to $4.3 million from $31.3 million in Q2 2023 [1][3][4] - The company is focusing on growth through partnerships and AI investments, with expectations for continued revenue and profit growth in Q3 and FY 2024 [4][6] Financial Performance - Q2 2024 financial highlights include: - Revenues: $428.2 million, up from $332.0 million in Q2 2023 - Gross profit: $114.8 million, compared to $97.1 million in the previous year - Net loss: $4.3 million, significantly improved from $31.3 million [1][5] - Year-over-year growth rates for key metrics: - Revenues: +29% - ex-TAC Gross Profit: +21% - Adjusted EBITDA: +138% - Free Cash Flow: +237% [1][6] Guidance and Projections - Q3 2024 guidance includes: - Revenues: $431 million (+20% YoY) - Gross profit: $134 million (+33% YoY) - Adj. EBITDA: $47 million (+106% YoY) [1][7] - Full Year 2024 guidance: - Revenues: $1.735-$1.765 billion - ex-TAC Gross Profit: $667 million (+25% YoY) - Adj. EBITDA: $200 million+ (2x+ YoY) [1][7] Strategic Initiatives - The company completed the migration of Yahoo advertisers and is ramping up spending, indicating a focus on user engagement and revenue generation [2][6] - Taboola launched "Audience Solution" to assist publishers in traffic growth, and secured a significant exclusive global OEM partnership with Taboola News [2][6] Market Position and Future Outlook - CEO Adam Singolda emphasized the transformational nature of 2024 for Taboola, driven by AI investments and partnerships with major brands like Yahoo and Apple [4][6] - The company aims to capture a share of the growing digital advertising market, projected to reach a trillion dollars [4][6]

Core Insights - TFF Pharmaceuticals is advancing its Phase 2 trial of Tacrolimus Inhalation Powder (TFF TAC) for lung transplant rejection prevention, with 13 patients now enrolled and showing promising results [1][3][4] Patient Enrollment and Treatment Outcomes - Patient enrollment has accelerated, with 13 patients currently in the trial [1][3] - TFF TAC, administered at approximately 20% of the oral tacrolimus dose, has prevented acute rejection and achieved over 80% of previous oral trough blood levels, leading to a reduced drug burden [1][3] - 100% of patients who completed the 12-week treatment opted to continue with TFF TAC in the long-term extension phase [1][3] - Total patient exposure to TFF TAC therapy has reached 2,063 days, equivalent to 5.65 years [3] Biomarker and Efficacy Data - A 6.5-fold reduction in the number of abnormally expressed rejection-related gene sets was observed after 12 weeks of treatment with TFF TAC [4][9] - No production of donor-specific antibodies (DSA) was detected in the first 8 patients, indicating sufficient systemic immune suppression [5][9] - The expression of rejection-related genes decreased from 23% to 4%, representing an 85% reduction [4] Safety and Tolerability - There have been no reported mortalities, and the majority of treatment-emergent adverse events were Grade 2 or lower [6] - No bronchospasm or wheezing was reported, and kidney function has been maintained [6] - One patient experienced acute rejection symptoms due to a dose that was too low, but this was resolved upon resuming oral tacrolimus [7] Future Plans and Regulatory Communication - The company is finalizing the design of the next study in collaboration with clinical investigators and regulatory authorities, with updates expected later in the fall [2][8]

Financial Data and Key Metrics Changes - TransAlta reported adjusted EBITDA of CAD 312 million, free cash flow of CAD 172 million or CAD 0.57 per share, and net earnings attributable to common shareholders of CAD 56 million or CAD 0.18 per share [4][14] - The company maintained a strong balance sheet with over CAD 1.7 billion in available liquidity, including CAD 350 million in cash [4] - Year-to-date free cash flow reached CAD 381 million or CAD 1.25 per share, approximately 73% of the annual guidance of CAD 525 million [15] Business Line Data and Key Metrics Changes - The Gas segment delivered adjusted EBITDA of CAD 146 million, driven by high availability and strong production [14] - The Hydro segment produced adjusted EBITDA of CAD 83 million, in line with expectations despite lower Alberta spot prices [14] - The Wind and Solar segment saw adjusted EBITDA increase by 76% to CAD 88 million due to new facilities coming online [14] - The Energy Transition segment delivered CAD 3 million of adjusted EBITDA, a decrease year-over-year due to an extended planned outage [15] Market Data and Key Metrics Changes - The average spot price in Alberta for the second quarter was CAD 45 per megawatt hour, significantly lower than CAD 160 per megawatt hour in the same period of 2023 [16] - The company maintained hedge volumes of approximately 2,100 gigawatt hours at an average price of CAD 84 per megawatt hour [17] - Realized merchant power price for the Alberta electricity portfolio was CAD 97 per megawatt hour, significantly above hedged and spot prices [17] Company Strategy and Development Direction - TransAlta is focused on enhancing its legacy thermal sites in Alberta and Washington State to meet growing electricity demand [11][24] - The company is actively pursuing redevelopment and re-contracting opportunities to serve a growing customer base [24] - The restructuring of the Alberta energy market is expected to provide long-term signals for investment and promote grid reliability [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2024 guidance, tracking to the upper end of adjusted EBITDA and free cash flow ranges [21] - The company does not expect adverse impacts from regulatory changes in the Alberta electricity market, viewing them as opportunities [22] - Management highlighted the importance of legacy thermal sites in ensuring grid reliability amid increasing renewable energy supply [8][11] Other Important Information - The Heartland Generation transaction is under regulatory review, with management optimistic about its potential benefits [6][28] - The company has returned CAD 89 million to shareholders through share repurchases, representing approximately 59% of its 2024 target [22] - TransAlta remains committed to achieving net-zero emissions by 2045 and is on track to meet its CO2 emissions reduction targets [25] Q&A Session Summary Question: Update on the Heartland transaction and potential alternatives - Management is engaged with regulators to complete the Heartland transaction and sees benefits in the asset mix despite ongoing challenges [28] Question: Insights on Alberta REM design and re-contracting opportunities - Discussions are ongoing regarding potential long-term contracts with data centers and the need for coal-to-gas conversion units for reliability [30][31] Question: Thoughts on capital recycling opportunities - Management is open to capital recycling as a strategy to maximize shareholder value, focusing on selling high-multiple assets to reinvest in lower-multiple opportunities [32][33] Question: Share buyback program and potential increase - The company is comfortable with the CAD 150 million buyback target and will reassess it based on performance and market conditions [35] Question: Viability of coal-to-gas assets and future strategies - Management is confident in the reliability and emissions performance of coal-to-gas units, considering their role in the evolving energy market [38][49] Question: Core assets and capital allocation strategy - Core assets include legacy coal-to-gas units, hydro facilities, and the Centralia site, with a focus on maximizing value through strategic capital allocation [44][45]

CALGARY, Alberta, Aug. 01, 2024 (GLOBE NEWSWIRE) -- TransAlta Corporation ("TransAlta" or the "Company") (TSX: TA) (NYSE: TAC) today reported its financial results for the three and six months ended June 30, 2024, demonstrating strong financial performance and reaffirming its 2024 outlook. Second Quarter 2024 Financial Highlights TransAlta's second quarter results exceeded expectations and delivered strong free cash flow and solid operating performance. The Company delivered Free Cash Flow ("FCF")(1) per sh ...

Growth and Development - The company aims to deliver 1.75 GW of growth with a target investment of $3.5 billion by 2028, which is expected to generate annual EBITDA of $350 million[4]. - The company anticipates expanding its development pipeline to 10 GW by 2028, with a projected increase in EBITDA from renewable sources to 70% by the end of 2028[4]. - The company has a robust pipeline of approximately 5 GW of project opportunities focused on hydro, wind, solar, energy storage, and gas[79]. - The company has several projects in advanced-stage development, including 100 MW wind and 180 MW battery storage projects, currently on hold[84]. - The early-stage development pipeline includes projects totaling 2,294 to 2,794 MW across Canada and the United States, with various investment dates from 2025 to 2027[86]. Financial Performance - Revenues for the three months ended June 30, 2024, decreased to CAD 582 million from CAD 625 million in 2023[14]. - Net earnings attributable to common shareholders for the three months ended June 30, 2024, were CAD 56 million, down from CAD 62 million in 2023[14]. - Total revenues for the six months ended June 30, 2024, were $1,540 million, a decrease from $1,724 million in the same period of 2023, representing a decline of approximately 10.7%[131]. - Adjusted EBITDA for the six months ended June 30, 2024, was $643 million, compared to $890 million for the same period in 2023, reflecting a decrease of about 27.8%[133]. - The gross margin for the six months ended June 30, 2024, was $910 million, down from $1,145 million in 2023, indicating a decline of approximately 20.5%[133]. Cash Flow and Liquidity - Available liquidity as of June 30, 2024, was CAD 1,700 million, slightly down from CAD 1,738 million at the end of 2023[15]. - Cash flow from operating activities for the six months ended June 30, 2024, was $352 million, down from $473 million in the same period in 2023, a decrease of 25.6%[105]. - Free Cash Flow (FCF) for the six months ended June 30, 2024, was $381 million, down from $541 million in 2023, indicating a decrease of approximately 29.6%[136]. - The company reported an adjusted FFO of $473 million for the six months ended June 30, 2024, compared to $765 million in 2023, reflecting a decline of about 38.3%[136]. - The company has $743 million of debt maturing between 2024 and 2026, including $400 million of recourse debt related to the Term Facility[95]. Shareholder Returns - The company has a common share repurchase program for 2024 of up to $150 million, returning up to 42% of the 2024 free cash guidance to shareholders[5]. - The company purchased and cancelled a total of 9,537,200 common shares during the six months ended June 30, 2024, at an average price of $9.54 per share, totaling $91 million[42]. - The company announced a share repurchase program for 2024 of up to $150 million, having purchased and cancelled 9,537,200 common shares at an average price of $9.54, totaling $91 million in the first half of 2024[82]. Operational Efficiency - The company expects stable and predictable cash flows, supported by a significant portion of thermal generation capacity being hedged[8]. - The company is currently constructing the Mount Keith West Network Upgrade project, which is expected to impact capital costs and annual EBITDA positively[4]. - Operational costs are projected to decrease by 8% due to improved efficiency measures implemented in the last quarter[8]. Market Conditions and Regulatory Environment - The Alberta Government announced new restrictions on renewable project approvals, impacting future development[80]. - The company anticipates muted near-term impacts on existing assets due to the Alberta Government's wholesale electricity market redesign[81]. - The Government of Alberta is developing a "Restructured Energy Market" with new market rules expected to be filed in 2025[151]. Environmental and Sustainability Goals - Future outlook remains positive with a focus on sustainability and reducing greenhouse gas emissions by 25% by 2025[10]. - The federal government aims for a 40% to 45% reduction in GHG emissions below 2005 levels by 2030, with a net-zero electricity sector target by 2035[150]. - Australia has increased its 2030 emissions reduction goal to 43% below 2005 levels and aims for 82% renewable electricity production by 2030[153].

Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum for strong stock picks [1][2] Company Analysis - Vistra (VST) is identified as a strong utility stock with a Zacks Rank of 2 (Buy) and a Value grade of A [3] - Vistra has a price-to-book (P/B) ratio of 5.14, significantly higher than its industry's average of 2.43, with a 52-week range of 3.06 to 8.95 [4] - TransAlta (TAC) is highlighted as a stock to watch, currently holding a Zacks Rank of 1 (Strong Buy) and an A for Value, with a price-to-earnings (P/E) ratio of 11.78 compared to the industry average of 13.85 [6] - TAC's Forward P/E has fluctuated between 4.46 and 17.65, with a median of 11.86 over the past year [6] - VST's Forward P/E has ranged from 7.51 to 27.95, with a median of 9.29 [7] - TAC's price-to-sales (P/S) ratio is 0.93, compared to the industry's average P/S of 2, indicating potential undervaluation [9] - Vistra's Forward P/E ratio is 12.53, and its PEG ratio is 0.95, both metrics are favorable compared to the industry's averages of 13.85 and 1.86 respectively [10] Investment Strategy - Value investing is emphasized as a preferred method for identifying strong stocks, utilizing fundamental analysis to find undervalued companies [5] - The metrics discussed for both TAC and VST suggest that these stocks are likely undervalued, supported by their strong earnings outlook [8]

Core Points - TransAlta Corporation declared a quarterly dividend of $0.06 per common share, payable on October 1, 2024, to shareholders of record as of September 1, 2024 [2] - The company also announced dividends for its preferred shares, with rates ranging from 2.877% to 7.972% and payment dates set for September 30, 2024 [3][5] Company Overview - TransAlta operates a diverse fleet of electrical power generation assets across Canada, the United States, and Australia, focusing on long-term shareholder value [7] - It is one of Canada's largest producers of wind power and Alberta's largest producer of hydro-electric power [7] - The company has achieved a 66% reduction in GHG emissions, equating to 21.3 million tonnes CO2e since 2015, and has received an upgraded MSCI ESG rating of AA [7]