Headquartered in Columbus, Ohio, American Electric Power Company, Inc. (AEP) is a major utility company with a market cap of $50.9 billion. AEP is one of the largest electric utilities in the U.S., providing reliable electricity to millions of customers across 11 states. The company operates a diverse portfolio of power generation assets, including coal, natural gas, nuclear, and renewable energy sources.
AEP's shares have underperformed the broader market over the past 52 weeks. AEP has gained 22.1% over this time frame, while the broader S&P 500 Index ($SPX) rallied 24.9%. However, in 2024, the stock has gained 18.9%, compared to SPX's 16.2% returns on a YTD basis.
Zooming in further, AEP outperformed the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained 17.6% over the past year. Also, the stock's YTD gains are ahead of the ETF’s 17% returns over the same time frame.
On Jul. 30, AEP shares gained over 1.1% after reporting Q2 results. The company’s earnings came in at $1.25 per share, surpassing the Wall Street estimates of $1.23. AEP posted revenue of $4.58 billion in the period.
For the current fiscal year, ending in December, analysts expect AEP’S EPS to grow 6.5% to $5.59 on a diluted basis. The company’s earning surprise history is mixed. It surpassed the consensus estimate in two of the last four quarters while missing the forecast twice.
Among the 18 analysts covering AEP stock, the consensus rating is a “Moderate Buy,” with six “Strong Buy” ratings, one “Moderate Buy,” nine “Holds,” one “Moderate Sell,” and one “Strong Sell.”
On Aug. 15, Scotiabank analyst Andrew Weisel maintained a “Buy” rating on AEP with a price target of $99, implying a marginal upside of 2.5%
The mean price target of $96.88 represents a marginal upside to AEP’s current price levels. The Street-high price target of $108 suggests an upside potential of 11.8%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
