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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 $97.63 in the latest trading session, marking a +0.36% move from the prior day. This change lagged the S&P 500's 1.29% gain on the day. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 10.96%.
Coming into today, shares of the utility had lost 1.36% in the past month. In that same time, the Utilities sector gained 1.71%, while the S&P 500 lost 0.23%.
Wall Street will be looking for positivity from American Electric Power as it approaches its next earnings report date. The company is expected to report EPS of $1.02, up 4.08% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.48 billion, up 9.31% from the prior-year quarter.
Investors should also note any 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.13% lower. American Electric Power is currently a Zacks Rank #3 (Hold).
In terms of valuation, American Electric Power is currently trading at a Forward P/E ratio of 18.33. This valuation marks a premium compared to its industry's average Forward P/E of 17.96.
Investors should also note that AEP has a PEG ratio of 2.99 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 3.23 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 72, putting it in the top 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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American Electric Power (AEP) Gains But Lags Market: What You Should Know
American Electric Power (AEP - Free Report) closed at $97.63 in the latest trading session, marking a +0.36% move from the prior day. This change lagged the S&P 500's 1.29% gain on the day. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 10.96%.
Coming into today, shares of the utility had lost 1.36% in the past month. In that same time, the Utilities sector gained 1.71%, while the S&P 500 lost 0.23%.
Wall Street will be looking for positivity from American Electric Power as it approaches its next earnings report date. The company is expected to report EPS of $1.02, up 4.08% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.48 billion, up 9.31% from the prior-year quarter.
Investors should also note any 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.13% lower. American Electric Power is currently a Zacks Rank #3 (Hold).
In terms of valuation, American Electric Power is currently trading at a Forward P/E ratio of 18.33. This valuation marks a premium compared to its industry's average Forward P/E of 17.96.
Investors should also note that AEP has a PEG ratio of 2.99 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 3.23 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 72, putting it in the top 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.