American Electric Power (AEP) closed at $98.88 in the latest trading session, marking a +0.31% move from the prior day. This move outpaced the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.15%.
Heading into today, shares of the utility had lost 3.98% over the past month, outpacing the Utilities sector's loss of 6.72% and the S&P 500's loss of 10.24% in that time.
American Electric Power will be looking to display strength as it nears its next earnings release. On that day, American Electric Power is projected to report earnings of $1.51 per share, which would represent year-over-year growth of 5.59%. Meanwhile, our latest consensus estimate is calling for revenue of $4.91 billion, up 6.85% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.99 per share and revenue of $18.51 billion, which would represent changes of +5.27% and +10.16%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for American Electric Power. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. American Electric Power is currently a Zacks Rank #3 (Hold).
Investors should also note American Electric Power's current valuation metrics, including its Forward P/E ratio of 19.75. For comparison, its industry has an average Forward P/E of 18.73, which means American Electric Power is trading at a premium to the group.
We can also see that AEP currently has a PEG ratio of 3.23. 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. AEP's industry had an average PEG ratio of 3.19 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report
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