Columbus, Ohio-based American Electric Power Company, Inc. (AEP) is an electric utility company that generates, transmits, and distributes electricity to millions of customers. Valued at a market cap of $64.1 billion, the company operates one of the largest electricity transmission systems and invests heavily in renewable energy, grid modernization, and sustainability initiatives to support the transition toward cleaner and more reliable power.
Shares of this utility company have outpaced the broader market over the past 52 weeks. AEP has rallied 24.4% over this time frame, while the broader S&P 500 Index ($SPX) has gained 13.7%. Moreover, on a YTD basis, the stock is up 29.8%, compared to SPX’s 14.6% uptick.
Zooming in further, AEP has also outperformed the Utilities Select Sector SPDR Fund’s (XLU) 14.4% return over the past 52 weeks and 17.2% YTD rise.
On Oct. 29, shares of AEP surged 6.1% after its Q3 earnings release, even though its adjusted EPS of $1.80 declined 2.7% from the same period last year and came in below expectations. However, on the brighter side, despite the earnings miss, AEP reaffirmed its fiscal 2025 operating earnings guidance range of $5.75 to $5.95 per share and expects results to be in the upper half of the range, which might have bolstered investor confidence.
For the current fiscal year, ending in December, analysts expect AEP’s EPS to grow 5% year over year to $5.90. The company’s earnings surprise history is mixed. It exceeded or met the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 22 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on seven “Strong Buy,” one “Moderate Buy,” 13 "Hold,” and one "Strong Sell” rating.
This configuration is slightly more bullish than a month ago, with six analysts suggesting a “Strong Buy” rating.
On Oct. 31, Citigroup Inc. (C) maintained a "Neutral" rating on AEP and raised its price target to $132, indicating a 10.2% potential upside from the current levels.
The mean price target of $127.34 represents a 6.3% premium from AEP’s current price levels, while the Street-high price target of $139 suggests an upside potential of 16%.
On the date of publication, Neharika Jain 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.
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