Algonquin Power & Utilities (AQN) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Algonquin Power & Utilities (AQN) closed at $7.22, marking a -0.96% move from the previous day. This change lagged the S&P 500's 0.7% gain on the day. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 7.5%.
Heading into today, shares of the utility operator had lost 0.27% over the past month, lagging the Utilities sector's gain of 1.65% and outpacing the S&P 500's loss of 0.94% in that time.
Investors will be hoping for strength from Algonquin Power & Utilities as it approaches its next earnings release. On that day, Algonquin Power & Utilities is projected to report earnings of $0.20 per share, which would represent a year-over-year decline of 4.76%. Our most recent consensus estimate is calling for quarterly revenue of $722.17 million, up 21.41% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Algonquin Power & Utilities. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.45% lower. Algonquin Power & Utilities is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, Algonquin Power & Utilities is currently trading at a Forward P/E ratio of 9.87. This valuation marks a discount compared to its industry's average Forward P/E of 18.06.
It is also worth noting that AQN currently has a PEG ratio of 3.26. 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. The Utility - Electric Power industry currently had an average PEG ratio of 3.23 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Algonquin Power & Utilities Corp. (AQN) : Free Stock Analysis Report
