Yahoo Finance Algonquin Power & Utilities (AQN) Gains But Lags Market: What You Should Know
Algonquin Power & Utilities (AQN) closed the most recent trading day at $13.70, moving +1.71% from the previous trading session. This move lagged the S&P 500's daily gain of 3.41%. Elsewhere, the Dow gained 3.44%, while the tech-heavy Nasdaq added 2.58%.
Heading into today, shares of the utility operator had lost 7.17% over the past month, outpacing the Utilities sector's loss of 17.62% and the S&P 500's loss of 10.46% in that time.
Investors will be hoping for strength from AQN as it approaches its next earnings release. In that report, analysts expect AQN to post earnings of $0.21 per share. This would mark year-over-year growth of 10.53%. Meanwhile, our latest consensus estimate is calling for revenue of $529 million, up 10.85% from the prior-year quarter.
AQN's full-year Zacks Consensus Estimates are calling for earnings of $0.67 per share and revenue of $1.83 billion. These results would represent year-over-year changes of +6.35% and +12.43%, respectively.
It is also important to note the recent changes to analyst estimates for AQN. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. AQN currently has a Zacks Rank of #2 (Buy).
Digging into valuation, AQN currently has a Forward P/E ratio of 20.17. This valuation marks a premium compared to its industry's average Forward P/E of 16.39.
Also, we should mention that AQN has a PEG ratio of 2.94. 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. The Utility - Electric Power was holding an average PEG ratio of 3.47 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 15% 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.
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