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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 the most recent trading day at $89.09, moving +1.25% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.62%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 12.91%.
Heading into today, shares of the utility had lost 6.94% over the past month, lagging the Utilities sector's loss of 5.67% and the S&P 500's loss of 4.54% in that time.
Investors will be hoping for strength from American Electric Power as it approaches its next earnings release. In that report, analysts expect American Electric Power to post earnings of $1.26 per share. This would mark year-over-year growth of 3.28%. Our most recent consensus estimate is calling for quarterly revenue of $4.84 billion, up 5.22% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.34 per share and revenue of $19.38 billion. These totals would mark changes of +4.91% and -1.14%, respectively, from last year.
Any recent changes to analyst estimates for American Electric Power should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.19% lower. American Electric Power is currently a Zacks Rank #3 (Hold).
Investors should also note American Electric Power's current valuation metrics, including its Forward P/E ratio of 16.47. For comparison, its industry has an average Forward P/E of 16.81, which means American Electric Power is trading at a discount to the group.
Investors should also note that AEP has a PEG ratio of 2.7 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 2.91 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 107, putting it in the top 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 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 the most recent trading day at $89.09, moving +1.25% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.62%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 12.91%.
Heading into today, shares of the utility had lost 6.94% over the past month, lagging the Utilities sector's loss of 5.67% and the S&P 500's loss of 4.54% in that time.
Investors will be hoping for strength from American Electric Power as it approaches its next earnings release. In that report, analysts expect American Electric Power to post earnings of $1.26 per share. This would mark year-over-year growth of 3.28%. Our most recent consensus estimate is calling for quarterly revenue of $4.84 billion, up 5.22% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.34 per share and revenue of $19.38 billion. These totals would mark changes of +4.91% and -1.14%, respectively, from last year.
Any recent changes to analyst estimates for American Electric Power should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.19% lower. American Electric Power is currently a Zacks Rank #3 (Hold).
Investors should also note American Electric Power's current valuation metrics, including its Forward P/E ratio of 16.47. For comparison, its industry has an average Forward P/E of 16.81, which means American Electric Power is trading at a discount to the group.
Investors should also note that AEP has a PEG ratio of 2.7 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 2.91 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 107, putting it in the top 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.