AVA or AEP: Which Is the Better Value Stock Right Now?

Core Viewpoint - The comparison between Avista (AVA) and American Electric Power (AEP) indicates that AVA is currently more attractive to value investors due to its stronger earnings estimate revision activity and more favorable valuation metrics [3][7]. Valuation Metrics - AVA has a forward P/E ratio of 14.70, while AEP has a forward P/E of 16.94 [5]. - AVA's PEG ratio is 2.76, compared to AEP's PEG ratio of 2.82, indicating AVA's expected earnings growth is slightly more favorable [5]. - AVA's P/B ratio is 1.14, whereas AEP's P/B ratio is 1.98, suggesting AVA is undervalued relative to its book value [6]. Analyst Outlook - AVA currently holds a Zacks Rank of 1 (Strong Buy), while AEP has a Zacks Rank of 3 (Hold), reflecting a more positive analyst outlook for AVA [3]. - The stronger estimate revision activity for AVA supports its position as the superior option for value investors at this time [7]. Style Scores - AVA has earned a Value grade of B, while AEP has a Value grade of C, indicating that AVA is viewed more favorably in terms of value investing criteria [6].