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American Electric Power (AEP) Gains As Market Dips: What You Should Know
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American Electric Power (AEP - Free Report) closed at $84.87 in the latest trading session, marking a +0.5% move from the prior day. This change outpaced the S&P 500's 0.65% loss on the day. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq added 0.03%.
Coming into today, shares of the utility had lost 19.71% in the past month. In that same time, the Utilities sector lost 15.61%, while the S&P 500 lost 11.07%.
Investors will be hoping for strength from American Electric Power as it approaches its next earnings release, which is expected to be October 27, 2022. The company is expected to report EPS of $1.52, up 6.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.91 billion, up 6.85% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5 per share and revenue of $18.39 billion, which would represent changes of +5.49% and +9.42%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for American Electric Power. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% higher. American Electric Power is currently a Zacks Rank #3 (Hold).
Digging into valuation, American Electric Power currently has a Forward P/E ratio of 16.9. Its industry sports an average Forward P/E of 16.2, so we one might conclude that American Electric Power is trading at a premium comparatively.
Investors should also note that AEP has a PEG ratio of 2.73 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Utility - Electric Power was holding an average PEG ratio of 2.75 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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American Electric Power (AEP) Gains As Market Dips: What You Should Know
American Electric Power (AEP - Free Report) closed at $84.87 in the latest trading session, marking a +0.5% move from the prior day. This change outpaced the S&P 500's 0.65% loss on the day. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq added 0.03%.
Coming into today, shares of the utility had lost 19.71% in the past month. In that same time, the Utilities sector lost 15.61%, while the S&P 500 lost 11.07%.
Investors will be hoping for strength from American Electric Power as it approaches its next earnings release, which is expected to be October 27, 2022. The company is expected to report EPS of $1.52, up 6.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.91 billion, up 6.85% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5 per share and revenue of $18.39 billion, which would represent changes of +5.49% and +9.42%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for American Electric Power. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% higher. American Electric Power is currently a Zacks Rank #3 (Hold).
Digging into valuation, American Electric Power currently has a Forward P/E ratio of 16.9. Its industry sports an average Forward P/E of 16.2, so we one might conclude that American Electric Power is trading at a premium comparatively.
Investors should also note that AEP has a PEG ratio of 2.73 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Utility - Electric Power was holding an average PEG ratio of 2.75 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.