Does Earnings Surprise History Hold Any Clue for American Electric Power (NASDAQ:AEP)

Earnings results for American Electric Power (NASDAQ:AEP)

American Electric Power Company, Inc. is expected* to report earnings on 02/25/2021 before market open. The report will be for the fiscal Quarter ending Dec 2020. According to Zacks Investment Research, based on 5 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.79. The reported EPS for the same quarter last year was $0.6.

Analyst Opinion on American Electric Power (NASDAQ:AEP)

13 Wall Street analysts have issued ratings and price targets for American Electric Power in the last 12 months. Their average twelve-month price target is $91.46, predicting that the stock has a possible upside of 19.14%. The high price target for AEP is $107.00 and the low price target for AEP is $80.00. There are currently 1 sell rating, 3 hold ratings and 9 buy ratings for the stock, resulting in a consensus rating of “Buy.”

American Electric Power has received a consensus rating of Buy. The company’s average rating score is 2.62, and is based on 9 buy ratings, 3 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $91.46, American Electric Power has a forecasted upside of 19.1% from its current price of $76.77. American Electric Power has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: American Electric Power (NASDAQ:AEP)

American Electric Power pays a meaningful dividend of 3.74%, higher than the bottom 25% of all stocks that pay dividends. American Electric Power does not have a long track record of dividend growth. The dividend payout ratio of American Electric Power is 69.81%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, American Electric Power will have a dividend payout ratio of 63.79% next year. This indicates that American Electric Power will be able to sustain or increase its dividend.

Insiders buying/selling: American Electric Power (NASDAQ:AEP)

In the past three months, American Electric Power insiders have not sold or bought any company stock. Only 0.16% of the stock of American Electric Power is held by insiders. 75.01% of the stock of American Electric Power is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of American Electric Power (NASDAQ:AEP

Earnings for American Electric Power are expected to grow by 7.16% in the coming year, from $4.33 to $4.64 per share. The P/E ratio of American Electric Power is 19.84, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 32.80. The P/E ratio of American Electric Power is 19.84, which means that it is trading at a less expensive P/E ratio than the Utilities sector average P/E ratio of about 34.56. American Electric Power has a PEG Ratio of 3.00. PEG Ratios above 1 indicate that a company could be overvalued. American Electric Power has a P/B Ratio of 1.90. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

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