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American Electric Power (AEP) Gains But Lags Market: What You Should Know
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In the latest trading session, American Electric Power (AEP - Free Report) closed at $92.81, marking a +0.61% move from the previous day. The stock lagged the S&P 500's daily gain of 1.96%. Meanwhile, the Dow gained 1.57%, and the Nasdaq, a tech-heavy index, lost 3.03%.
Coming into today, shares of the utility had gained 2.39% in the past month. In that same time, the Utilities sector gained 4.75%, while the S&P 500 gained 2.19%.
Wall Street will be looking for positivity from American Electric Power as it approaches its next earnings report date. This is expected to be May 4, 2023. In that report, analysts expect American Electric Power to post earnings of $1.18 per share. This would mark a year-over-year decline of 3.28%. Our most recent consensus estimate is calling for quarterly revenue of $4.57 billion, down 0.66% from the year-ago period.
AEP's full-year Zacks Consensus Estimates are calling for earnings of $5.27 per share and revenue of $19.97 billion. These results would represent year-over-year changes of +3.54% and +1.91%, respectively.
Investors should also note any recent changes to analyst estimates for American Electric Power. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. American Electric Power is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, American Electric Power currently has a Forward P/E ratio of 17.52. This valuation marks a discount compared to its industry's average Forward P/E of 17.63.
Investors should also note that AEP has a PEG ratio of 3.06 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.98 based on yesterday's closing prices.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow AEP in the coming trading sessions, be sure to utilize Zacks.com.
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American Electric Power (AEP) Gains But Lags Market: What You Should Know
In the latest trading session, American Electric Power (AEP - Free Report) closed at $92.81, marking a +0.61% move from the previous day. The stock lagged the S&P 500's daily gain of 1.96%. Meanwhile, the Dow gained 1.57%, and the Nasdaq, a tech-heavy index, lost 3.03%.
Coming into today, shares of the utility had gained 2.39% in the past month. In that same time, the Utilities sector gained 4.75%, while the S&P 500 gained 2.19%.
Wall Street will be looking for positivity from American Electric Power as it approaches its next earnings report date. This is expected to be May 4, 2023. In that report, analysts expect American Electric Power to post earnings of $1.18 per share. This would mark a year-over-year decline of 3.28%. Our most recent consensus estimate is calling for quarterly revenue of $4.57 billion, down 0.66% from the year-ago period.
AEP's full-year Zacks Consensus Estimates are calling for earnings of $5.27 per share and revenue of $19.97 billion. These results would represent year-over-year changes of +3.54% and +1.91%, respectively.
Investors should also note any recent changes to analyst estimates for American Electric Power. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. American Electric Power is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, American Electric Power currently has a Forward P/E ratio of 17.52. This valuation marks a discount compared to its industry's average Forward P/E of 17.63.
Investors should also note that AEP has a PEG ratio of 3.06 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.98 based on yesterday's closing prices.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow AEP in the coming trading sessions, be sure to utilize Zacks.com.