We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Electric Power (AEP) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
American Electric Power (AEP - Free Report) closed at $84.58 in the latest trading session, marking a +1.37% move from the prior day. This move outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq lost 4.19%.
Heading into today, shares of the utility had lost 8.41% over the past month, lagging the Utilities sector's loss of 4.54% and the S&P 500's gain of 3.78% in that time.
American Electric Power will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.27, up 5.83% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.78 billion, up 3.97% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.27 per share and revenue of $20.12 billion, which would represent changes of +3.54% and +2.63%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for American Electric Power. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Within the past 30 days, our consensus EPS projection has moved 0.14% higher. American Electric Power currently has a Zacks Rank of #3 (Hold).
Investors should also note American Electric Power's current valuation metrics, including its Forward P/E ratio of 15.83. This represents a discount compared to its industry's average Forward P/E of 16.56.
Meanwhile, AEP's PEG ratio is currently 2.76. 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 was holding an average PEG ratio of 2.8 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 58, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
American Electric Power (AEP) Gains As Market Dips: What You Should Know
American Electric Power (AEP - Free Report) closed at $84.58 in the latest trading session, marking a +1.37% move from the prior day. This move outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq lost 4.19%.
Heading into today, shares of the utility had lost 8.41% over the past month, lagging the Utilities sector's loss of 4.54% and the S&P 500's gain of 3.78% in that time.
American Electric Power will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.27, up 5.83% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.78 billion, up 3.97% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.27 per share and revenue of $20.12 billion, which would represent changes of +3.54% and +2.63%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for American Electric Power. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Within the past 30 days, our consensus EPS projection has moved 0.14% higher. American Electric Power currently has a Zacks Rank of #3 (Hold).
Investors should also note American Electric Power's current valuation metrics, including its Forward P/E ratio of 15.83. This represents a discount compared to its industry's average Forward P/E of 16.56.
Meanwhile, AEP's PEG ratio is currently 2.76. 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 was holding an average PEG ratio of 2.8 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 58, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.