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In the latest trading session, American Electric Power (AEP) closed at $89.19, marking a -1.61% move from the previous day. This move was narrower than the S&P 500's daily loss of 3.25%. At the same time, the Dow lost 2.42%, and the tech-heavy Nasdaq lost 0.41%.
Coming into today, shares of the utility had lost 9.24% in the past month. In that same time, the Utilities sector lost 6.04%, while the S&P 500 lost 5.62%.
Wall Street will be looking for positivity from American Electric Power as it approaches its next earnings report date. The company is expected to report EPS of $1.13, down 4.24% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.18 billion, up 9.11% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.01 per share and revenue of $18.16 billion, which would represent changes of +5.7% and +8.04%, respectively, from the prior year.
Any recent changes to analyst estimates for American Electric Power should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.4% higher within the past month. American Electric Power is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note American Electric Power's current valuation metrics, including its Forward P/E ratio of 18.08. Its industry sports an average Forward P/E of 17.92, so we one might conclude that American Electric Power is trading at a premium comparatively.
Meanwhile, AEP's PEG ratio is currently 2.92. 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 3.02 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.