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Trade-Ideas LLC identified
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified American Electric Power as such a stock due to the following factors:
- AEP has 11x the normal benchmarked social activity for this time of the day compared to its average of 1.16 mentions/day.
- AEP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $154.6 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on AEP:
American Electric Power Company, Inc., a public utility holding company, is engaged in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers. The stock currently has a dividend yield of 3.5%. AEP has a PE ratio of 16.4. Currently there are 8 analysts that rate American Electric Power a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for American Electric Power has been 2.7 million shares per day over the past 30 days. American Electric has a market cap of $29.3 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.51 and a short float of 1.4% with 2.62 days to cover. Shares are up 28.7% year-to-date as of the close of trading on Monday.
rates American Electric Power as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 28.96% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AEP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- AMERICAN ELECTRIC POWER CO has improved earnings per share by 13.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, AMERICAN ELECTRIC POWER CO increased its bottom line by earning $3.04 versus $2.60 in the prior year. This year, the market expects an improvement in earnings ($3.47 versus $3.04).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Electric Utilities industry average. The net income increased by 13.9% when compared to the same quarter one year prior, going from $433.00 million to $493.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 3.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electric Utilities industry and the overall market on the basis of return on equity, AMERICAN ELECTRIC POWER CO has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full American Electric Power Ratings Report.