Written by Christopher Liew, CFA at The Motley Fool Canada
Several factors affect the stock market’s behaviour, causing it to go up and down every time. Inflation, monetary policy, and investors’ confidence are the prevailing headwinds lately. Regarding the third factor, investors misread the market sometimes and overlook some stocks.
For example, TransAlta (TSX:TA) and Crew Energy (TSX:CR) have been on downtrends lately. The independent power producer (IPP) and oil & natural gas producer are good investment options but are underpriced. Both stocks are excellent plays for their depressed price and inevitable rebound.
Positioned for future success
Utility companies are sensitive to interest rates but are safe havens when the market gets tough. TransAlta operates power-generation facilities such as wind (33), hydroelectric (25), gas (17), and coal (1). The $2.88 billion IPP caters to customers and end-users…
