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American Electric Power (AEP) Stock Sinks As Market Gains: What You Should Know
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American Electric Power (AEP - Free Report) closed at $82.02 in the latest trading session, marking a -1.32% move from the prior day. This change lagged the S&P 500's 0.99% gain on the day.
Coming into today, shares of the utility had lost 8.53% in the past month. In that same time, the Utilities sector lost 5.04%, while the S&P 500 gained 0.42%.
Investors will be hoping for strength from American Electric Power as it approaches its next earnings release. On that day, American Electric Power is projected to report earnings of $1.27 per share, which would represent year-over-year growth of 5.83%. Our most recent consensus estimate is calling for quarterly revenue of $4.78 billion, up 3.97% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.27 per share and revenue of $20.12 billion, which would represent changes of +3.54% and +2.63%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for American Electric Power. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. American Electric Power is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, American Electric Power is currently trading at a Forward P/E ratio of 15.77. Its industry sports an average Forward P/E of 16.27, so we one might conclude that American Electric Power is trading at a discount comparatively.
Also, we should mention that AEP has a PEG ratio of 2.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AEP's industry had an average PEG ratio of 2.76 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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American Electric Power (AEP) Stock Sinks As Market Gains: What You Should Know
American Electric Power (AEP - Free Report) closed at $82.02 in the latest trading session, marking a -1.32% move from the prior day. This change lagged the S&P 500's 0.99% gain on the day.
Coming into today, shares of the utility had lost 8.53% in the past month. In that same time, the Utilities sector lost 5.04%, while the S&P 500 gained 0.42%.
Investors will be hoping for strength from American Electric Power as it approaches its next earnings release. On that day, American Electric Power is projected to report earnings of $1.27 per share, which would represent year-over-year growth of 5.83%. Our most recent consensus estimate is calling for quarterly revenue of $4.78 billion, up 3.97% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.27 per share and revenue of $20.12 billion, which would represent changes of +3.54% and +2.63%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for American Electric Power. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. American Electric Power is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, American Electric Power is currently trading at a Forward P/E ratio of 15.77. Its industry sports an average Forward P/E of 16.27, so we one might conclude that American Electric Power is trading at a discount comparatively.
Also, we should mention that AEP has a PEG ratio of 2.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AEP's industry had an average PEG ratio of 2.76 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.