AEPAmerican Electric Power (AEP) presents a stable investment profile driven by its essential utility services and dividend income. While fundamental metrics are solid, current valuation and technical indicators suggest a more cautious approach for short-term traders, but it remains attractive for long-term income-focused investors.
AEP operates in the regulated utility sector, which benefits from predictable demand but faces growth headwinds compared to high-growth technology sectors. The transition to renewable energy sources presents a significant thematic opportunity and challenge.
AEP demonstrates strong operational performance, consistent revenue generation, and healthy profitability. Its balance sheet is robust, though debt levels are substantial, as expected for a capital-intensive utility company.
The stock is trading near its 52-week high and exhibits mixed technical signals. While the longer-term trend remains positive, short-term indicators suggest a potential for sideways movement or minor pullbacks.
| Factor | Score |
|---|---|
| Renewable Energy Transition | 75 |
| Infrastructure Modernization | 80 |
| Economic Sensitivity | 50 |
| Regulatory Environment | 60 |
| Dividend Sustainability | 70 |
| Factor | Score |
|---|---|
| Valuation | 70 |
| Profitability | 80 |
| Growth | 65 |
| Balance Sheet Health | 60 |
| Cash Flow | 75 |
| Factor | Score |
|---|---|
| Trend Analysis | 70 |
| Momentum | 60 |
| Support & Resistance | 65 |
| Volume Analysis | 60 |
| Short-Term Signals | 50 |
Consistent Earnings Surprises
The company has consistently beaten earnings per share (EPS) estimates in the last several quarters, with a positive surprise percentage ranging from 1.38% to 10.04%.
Reliable Dividend Payments
The company has a history of consistent dividend payments, with a dividend yield of approximately 3.32%.
Negative Free Cash Flow
The company reported a negative free cash flow of -$0.966 billion for the annual period ending 2024Q4, which can impact its ability to fund operations, investments, and debt obligations.
Potential Overbought Conditions
On the daily technical analysis, the RSI is at 66.36 and Stochastic %K is at 85.59, suggesting the stock may be approaching or entering overbought territory, indicating a potential for a pullback.
May 2025
9
Ex-Dividend Date
June 2025
10
Next Dividend Date
July 2025
30
Next Earnings Date
H: $1.35
A: $1.25
L: $1.00
H: 5.33B
A: 4.89B
L: 4.22B
American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, natural gas, renewable, nuclear, hydro, solar, wind, and other energy sources; owns, operates, maintains, and invests in transmission infrastructure; and engages in wholesale energy trading and marketing business. It operates approximately 225,000 circuit miles of distribution lines that delivers electricity to 5.6 million customers; 40,000 circuit miles of transmission lines; and 23,000 MWs of regulated owned generating capacity. American Electric Power Company, Inc. was incorporated in 1906 and is headquartered in Columbus, Ohio.
109.52 USD
The 39 analysts offering 1 year price forecasts for AEP have a max estimate of 120.00 and a min estimate of 98.78.