Algonquin Power & Utilities (AQN) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Algonquin Power & Utilities (AQN) closed at $7.72, marking a +0.52% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.14%. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq gained 1.54%.
Coming into today, shares of the utility operator had gained 3.09% in the past month. In that same time, the Utilities sector lost 3.62%, while the S&P 500 lost 4.07%.
Investors will be hoping for strength from Algonquin Power & Utilities as it approaches 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 $698.37 million, up 17.41% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Algonquin Power & Utilities. 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. 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. The Zacks Consensus EPS estimate has moved 0.28% lower within the past month. Algonquin Power & Utilities is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Algonquin Power & Utilities currently has a Forward P/E ratio of 12.84. For comparison, its industry has an average Forward P/E of 16.72, which means Algonquin Power & Utilities is trading at a discount to the group.
Investors should also note that AQN has a PEG ratio of 4.24 right now. 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. The Utility - Electric Power industry currently 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 150, putting it in the bottom 41% 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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Algonquin Power & Utilities Corp. (AQN) : Free Stock Analysis Report
