In the latest trading session, American Electric Power (AEP) closed at $83.44, marking a -0.41% move from the previous day. This change lagged the S&P 500's daily gain of 1.15%. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 7.23%.
Prior to today's trading, shares of the utility had gained 1.86% over the past month. This has lagged the Utilities sector's gain of 2.15% and the S&P 500's gain of 3.08% in that time.
Investors will be hoping for strength from American Electric Power as it approaches its next earnings release. In that report, analysts expect American Electric Power to post earnings of $1.26 per share. This would mark year-over-year growth of 5%. Our most recent consensus estimate is calling for quarterly revenue of $4.77 billion, up 3.78% from the year-ago period.
AEP's full-year Zacks Consensus Estimates are calling for earnings of $5.26 per share and revenue of $20.09 billion. These results would represent year-over-year changes of +3.34% and +2.47%, respectively.
Investors might also notice recent changes to analyst estimates for American Electric Power. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. American Electric Power is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that American Electric Power has a Forward P/E ratio of 15.92 right now. This valuation marks a discount compared to its industry's average Forward P/E of 16.5.
It is also worth noting that AEP currently has a PEG ratio of 2.84. 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. AEP's industry had an average PEG ratio of 2.85 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners UpAmerican Electric Power Company, Inc. (AEP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
