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American Electric Power (AEP) Gains But Lags Market: What You Should Know
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American Electric Power (AEP - Free Report) closed at $93.56 in the latest trading session, marking a +0.75% move from the prior day. This change lagged the S&P 500's 1.97% gain on the day. Meanwhile, the Dow gained 1.88%, and the Nasdaq, a tech-heavy index, added 0.25%.
Prior to today's trading, shares of the utility had lost 8.37% over the past month. This has was narrower than the Utilities sector's loss of 9.76% and the S&P 500's loss of 9.93% in that time.
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 $1.51 per share, which would represent year-over-year growth of 5.59%. Our most recent consensus estimate is calling for quarterly revenue of $4.91 billion, up 6.85% from the year-ago period.
AEP's full-year Zacks Consensus Estimates are calling for earnings of $4.99 per share and revenue of $18.39 billion. These results would represent year-over-year changes of +5.27% and +9.42%, respectively.
Investors might also notice recent changes to analyst estimates for American Electric Power. These revisions help to show the ever-changing nature of near-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. American Electric Power is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, American Electric Power is holding a Forward P/E ratio of 18.6. This represents a premium compared to its industry's average Forward P/E of 17.76.
Investors should also note that AEP has a PEG ratio of 3.05 right now. 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. The Utility - Electric Power industry currently had an average PEG ratio of 3.01 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% 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.
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 But Lags Market: What You Should Know
American Electric Power (AEP - Free Report) closed at $93.56 in the latest trading session, marking a +0.75% move from the prior day. This change lagged the S&P 500's 1.97% gain on the day. Meanwhile, the Dow gained 1.88%, and the Nasdaq, a tech-heavy index, added 0.25%.
Prior to today's trading, shares of the utility had lost 8.37% over the past month. This has was narrower than the Utilities sector's loss of 9.76% and the S&P 500's loss of 9.93% in that time.
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 $1.51 per share, which would represent year-over-year growth of 5.59%. Our most recent consensus estimate is calling for quarterly revenue of $4.91 billion, up 6.85% from the year-ago period.
AEP's full-year Zacks Consensus Estimates are calling for earnings of $4.99 per share and revenue of $18.39 billion. These results would represent year-over-year changes of +5.27% and +9.42%, respectively.
Investors might also notice recent changes to analyst estimates for American Electric Power. These revisions help to show the ever-changing nature of near-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. American Electric Power is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, American Electric Power is holding a Forward P/E ratio of 18.6. This represents a premium compared to its industry's average Forward P/E of 17.76.
Investors should also note that AEP has a PEG ratio of 3.05 right now. 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. The Utility - Electric Power industry currently had an average PEG ratio of 3.01 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.