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Algonquin Power & Utilities (AQN) Gains As Market Dips: What You Should Know

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Algonquin Power & Utilities (AQN - Free Report) closed the most recent trading day at $7.74, moving +1.18% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, added 1.58%.

Prior to today's trading, shares of the utility operator had gained 4.51% over the past month. This has outpaced the Utilities sector's loss of 2.83% and the S&P 500's gain of 0.84% in that time.

Algonquin Power & Utilities will be looking to display strength as it nears its next earnings release, which is expected to be March 17, 2023. The company is expected to report EPS of $0.19, down 9.52% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $705.03 million, up 18.53% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Algonquin Power & Utilities. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Algonquin Power & Utilities is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Algonquin Power & Utilities is holding a Forward P/E ratio of 12.75. For comparison, its industry has an average Forward P/E of 17.39, which means Algonquin Power & Utilities is trading at a discount to the group.

It is also worth noting that AQN currently has a PEG ratio of 4.21. 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. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3.15 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 147, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AQN in the coming trading sessions, be sure to utilize Zacks.com.


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