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American Electric Power (AEP) Stock Sinks As Market Gains: What You Should Know
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American Electric Power (AEP - Free Report) closed the most recent trading day at $103.98, moving -0.73% from the previous trading session. This change lagged the S&P 500's daily gain of 0.66%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Heading into today, shares of the utility had gained 3.36% over the past month, outpacing the Utilities sector's gain of 1.58% and the S&P 500's loss of 3.79% in that time.
American Electric Power will be looking to display strength as it nears its next earnings release. On that day, American Electric Power is projected to report earnings of $1.51 per share, which would represent year-over-year growth of 5.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.91 billion, up 6.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5 per share and revenue of $18.51 billion. These totals would mark changes of +5.49% and +10.16%, respectively, from last year.
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. 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 remained stagnant. 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 20.97. For comparison, its industry has an average Forward P/E of 19.93, which means American Electric Power is trading at a premium to the group.
Investors should also note that AEP has a PEG ratio of 3.38 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3.35 based on yesterday's closing prices.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% 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.
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American Electric Power (AEP) Stock Sinks As Market Gains: What You Should Know
American Electric Power (AEP - Free Report) closed the most recent trading day at $103.98, moving -0.73% from the previous trading session. This change lagged the S&P 500's daily gain of 0.66%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Heading into today, shares of the utility had gained 3.36% over the past month, outpacing the Utilities sector's gain of 1.58% and the S&P 500's loss of 3.79% in that time.
American Electric Power will be looking to display strength as it nears its next earnings release. On that day, American Electric Power is projected to report earnings of $1.51 per share, which would represent year-over-year growth of 5.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.91 billion, up 6.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5 per share and revenue of $18.51 billion. These totals would mark changes of +5.49% and +10.16%, respectively, from last year.
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. 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 remained stagnant. 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 20.97. For comparison, its industry has an average Forward P/E of 19.93, which means American Electric Power is trading at a premium to the group.
Investors should also note that AEP has a PEG ratio of 3.38 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3.35 based on yesterday's closing prices.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% 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.