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Atlantic Power (AT) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Atlantic Power (AT) closed the most recent trading day at $2.38, moving +1.71% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.38%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.73%.

Coming into today, shares of the utility had gained 1.3% in the past month. In that same time, the Utilities sector gained 1.65%, while the S&P 500 gained 3.19%.

Wall Street will be looking for positivity from AT as it approaches its next earnings report date. In that report, analysts expect AT to post earnings of $0.04 per share. This would mark year-over-year growth of 166.67%.

AT's full-year Zacks Consensus Estimates are calling for earnings of $0.24 per share and revenue of $288 million. These results would represent year-over-year changes of +50% and +2.02%, respectively.

Any recent changes to analyst estimates for AT 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AT is currently a Zacks Rank #1 (Strong Buy).

Investors should also note AT's current valuation metrics, including its Forward P/E ratio of 9.75. This represents a discount compared to its industry's average Forward P/E of 20.12.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 36% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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