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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 at $92.28 in the latest trading session, marking a -0.24% move from the prior day. This move lagged the S&P 500's daily gain of 1.29%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq lost 4.94%.
Heading into today, shares of the utility had lost 5.56% over the past month, lagging the Utilities sector's loss of 2.29% and the S&P 500's gain of 5.64% in that time.
Investors will be hoping for strength from American Electric Power as it approaches its next earnings release, which is expected to be February 23, 2023. On that day, American Electric Power is projected to report earnings of $1.02 per share, which would represent year-over-year growth of 4.08%. Meanwhile, our latest consensus estimate is calling for revenue of $4.25 billion, up 3.78% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for American Electric Power. These revisions help to show the ever-changing nature of 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.76% higher. 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 17.29 right now. This represents a discount compared to its industry's average Forward P/E of 17.5.
We can also see 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 3.18 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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.
To follow AEP in the coming trading sessions, be sure to utilize 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 at $92.28 in the latest trading session, marking a -0.24% move from the prior day. This move lagged the S&P 500's daily gain of 1.29%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq lost 4.94%.
Heading into today, shares of the utility had lost 5.56% over the past month, lagging the Utilities sector's loss of 2.29% and the S&P 500's gain of 5.64% in that time.
Investors will be hoping for strength from American Electric Power as it approaches its next earnings release, which is expected to be February 23, 2023. On that day, American Electric Power is projected to report earnings of $1.02 per share, which would represent year-over-year growth of 4.08%. Meanwhile, our latest consensus estimate is calling for revenue of $4.25 billion, up 3.78% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for American Electric Power. These revisions help to show the ever-changing nature of 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.76% higher. 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 17.29 right now. This represents a discount compared to its industry's average Forward P/E of 17.5.
We can also see 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 3.18 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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.
To follow AEP in the coming trading sessions, be sure to utilize Zacks.com.