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American Electric Power (AEP) Dips More Than Broader Markets: What You Should Know

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American Electric Power (AEP - Free Report) closed at $92.35 in the latest trading session, marking a -0.38% move from the prior day. This move lagged the S&P 500's daily loss of 0.02%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 5.44%.

Heading into today, shares of the utility had lost 3.73% over the past month, lagging the Utilities sector's loss of 0.25% and the S&P 500's gain of 4.57% in that time.

Wall Street will be looking for positivity from American Electric Power as it approaches its next earnings report date. This is expected to be February 23, 2023. In that report, analysts expect American Electric Power to post earnings of $1 per share. This would mark year-over-year growth of 2.04%. Meanwhile, our latest consensus estimate is calling for revenue of $4.48 billion, up 9.31% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for American Electric Power. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.78% higher. American Electric Power is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note American Electric Power's current valuation metrics, including its Forward P/E ratio of 17.33. This valuation marks a discount compared to its industry's average Forward P/E of 17.52.

It is also worth noting that AEP currently has a PEG ratio of 2.83. 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 3.17 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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