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American Electric Power (AEP) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, American Electric Power (AEP - Free Report) closed at $90.70, marking a -1.42% move from the previous day. This move lagged the S&P 500's daily loss of 1.1%. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, lost 3.27%.
Prior to today's trading, shares of the utility had gained 1.44% over the past month. This has outpaced the Utilities sector's loss of 0.06% and the S&P 500's loss of 3.02% in that time.
Investors will be hoping for strength from American Electric Power as it approaches its next earnings release. The company is expected to report EPS of $1.27, up 4.1% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.77 billion, up 3.73% from the year-ago period.
AEP's full-year Zacks Consensus Estimates are calling for earnings of $5.32 per share and revenue of $19.53 billion. These results would represent year-over-year changes of +4.52% and -0.36%, respectively.
Any recent changes to analyst estimates for American Electric Power should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 1.56% lower within the past month. American Electric Power is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Electric Power has a Forward P/E ratio of 17.28 right now. For comparison, its industry has an average Forward P/E of 17.26, which means American Electric Power is trading at a premium to the group.
We can also see that AEP currently has a PEG ratio of 2.83. 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. The Utility - Electric Power was holding an average PEG ratio of 2.93 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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.
To follow AEP in the coming trading sessions, be sure to utilize Zacks.com.
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American Electric Power (AEP) Dips More Than Broader Markets: What You Should Know
In the latest trading session, American Electric Power (AEP - Free Report) closed at $90.70, marking a -1.42% move from the previous day. This move lagged the S&P 500's daily loss of 1.1%. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, lost 3.27%.
Prior to today's trading, shares of the utility had gained 1.44% over the past month. This has outpaced the Utilities sector's loss of 0.06% and the S&P 500's loss of 3.02% in that time.
Investors will be hoping for strength from American Electric Power as it approaches its next earnings release. The company is expected to report EPS of $1.27, up 4.1% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.77 billion, up 3.73% from the year-ago period.
AEP's full-year Zacks Consensus Estimates are calling for earnings of $5.32 per share and revenue of $19.53 billion. These results would represent year-over-year changes of +4.52% and -0.36%, respectively.
Any recent changes to analyst estimates for American Electric Power should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 1.56% lower within the past month. American Electric Power is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Electric Power has a Forward P/E ratio of 17.28 right now. For comparison, its industry has an average Forward P/E of 17.26, which means American Electric Power is trading at a premium to the group.
We can also see that AEP currently has a PEG ratio of 2.83. 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. The Utility - Electric Power was holding an average PEG ratio of 2.93 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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.
To follow AEP in the coming trading sessions, be sure to utilize Zacks.com.