We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will American Electric (AEP) Disappoint This Earning Season?
Read MoreHide Full Article
American Electric Power (AEP - Free Report) is set to release second-quarter 2017 financial results on Jul 27, before the market opens. Last quarter, this power management company posted a negative earnings surprise of 1.03%.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
American Electric is highly dependent on coal. Therefore, President Trump’s emphasis on improving the coal industry and relaxing the stringent environmental regulations can boost the company’s prospects over the long run.
American Electric is expected to benefit from the improving economic conditions in its service territories, plus its efficient cost management initiatives will also going to help.
Ohio and Texas represents more than one-half of utility revenues of the company and the power generation from these states is deregulated. The current lower price environment will hurt earnings of American Electric Power as substantial portion of its production is deregulated.
American Electric Power Company, Inc. Price and EPS Surprise
Our proven model does not conclusively show that American Electric is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks ESP: The Most Accurate estimate is at 81 cents while the Zacks Consensus Estimate is pegged at 87 cents, resulting in an Earnings ESP of -6.90%.
Zacks Rank: American Electric carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few companies in the utility sector that have the right combination of elements to post an earnings beat this quarter.
Xcel Energy Inc. (XEL - Free Report) has an Earnings ESP of +2.38% and holds a Zacks Rank #3. It is slated to report second-quarter 2017 results on Jul 27.
Pattern Energy Group Inc. has an Earnings ESP of +23.08% and carries a Zacks Rank #2. It is slated to report second-quarter 2017 results on Aug 4.
The AES Corporation (AES - Free Report) has an Earnings ESP of +20.00% and holds a Zacks Rank #2. It is slated to report second-quarter 2017 results on Aug 8.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Will American Electric (AEP) Disappoint This Earning Season?
American Electric Power (AEP - Free Report) is set to release second-quarter 2017 financial results on Jul 27, before the market opens. Last quarter, this power management company posted a negative earnings surprise of 1.03%.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
American Electric is highly dependent on coal. Therefore, President Trump’s emphasis on improving the coal industry and relaxing the stringent environmental regulations can boost the company’s prospects over the long run.
American Electric is expected to benefit from the improving economic conditions in its service territories, plus its efficient cost management initiatives will also going to help.
Ohio and Texas represents more than one-half of utility revenues of the company and the power generation from these states is deregulated. The current lower price environment will hurt earnings of American Electric Power as substantial portion of its production is deregulated.
American Electric Power Company, Inc. Price and EPS Surprise
American Electric Power Company, Inc. Price and EPS Surprise | American Electric Power Company, Inc. Quote
Earnings Whispers
Our proven model does not conclusively show that American Electric is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks ESP: The Most Accurate estimate is at 81 cents while the Zacks Consensus Estimate is pegged at 87 cents, resulting in an Earnings ESP of -6.90%.
Zacks Rank: American Electric carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few companies in the utility sector that have the right combination of elements to post an earnings beat this quarter.
Xcel Energy Inc. (XEL - Free Report) has an Earnings ESP of +2.38% and holds a Zacks Rank #3. It is slated to report second-quarter 2017 results on Jul 27.
Pattern Energy Group Inc. has an Earnings ESP of +23.08% and carries a Zacks Rank #2. It is slated to report second-quarter 2017 results on Aug 4.
The AES Corporation (AES - Free Report) has an Earnings ESP of +20.00% and holds a Zacks Rank #2. It is slated to report second-quarter 2017 results on Aug 8.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>