American Electric Power Company, Inc. (AEP), headquartered in Columbus, Ohio, is a major player in the energy sector. It specializes in generating, transmitting, and distributing electricity. With a substantial market cap of $45.89 billion, AEP is a leading force in the utility industry. The company's dedication to innovative energy solutions and reliable customer service reinforces its position as a key contributor to the global energy landscape.
Companies worth $10 billion or more are generally considered "large-cap" stocks, and American Electric Power exemplifies this category with its substantial size, stability, and influence in the utility sector. AEP remains a crucial player in the energy market by continually enhancing its range of reliable power services and driving innovation in renewable energy and smart grid technologies.
Shares of AEP have dropped 5.7% from their 52-week high of $93.44, which they reached on May 21. Over the past three months, AEP's shares have gained 6.3%, marginally underperforming the broader Nasdaq Composite ($NASX), which gained 6.5% during the same period.
In the longer term, AEP is up 8.5% YTD, and the shares have gained 5.6% over the past 52 weeks. In comparison, the Nasdaq is up 16.6% in 2024 and 29.7% over the past year.
However, AEP has been trading above its 200-day moving average since mid-April.
AEP reported Q1 earnings on Apr. 30. The company reported net income of $1 billion, or $1.91 per share. Adjusted for non-recurring gains, earnings were $1.27 per share, falling short of Wall Street expectations of $1.30 per share. The company posted $5 billion in revenue for the period and expects full-year earnings to range between $5.53 and $5.73 per share. However, the stock declined marginally on the earnings release day and gained 2.5% the following day.
Rival CMS Energy Corporation (CMS) is underperforming both AEP and NASX. CMS shares have gained 4.7% on a YTD basis.
Analysts are optimistic about AEP's prospects despite its underperformance compared to NASX. The stock has a consensus rating of "Moderate Buy" from 18 analysts in coverage. The mean price target of $90.38 reflects a 2.5% premium over current levels.
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.
