Is Wall Street Bullish or Bearish on American Electric Power Stock?
With a market cap of $55.9 billion, American Electric Power Company, Inc. (AEP) is one of the largest electric utility holding companies in the United States, providing electricity to 5.6 million customers across 11 states. The company operates through multiple business segments, including electricity generation, transmission, distribution, and energy marketing.
Shares of the Columbus, Ohio-based company have outperformed the broader market over the past 52 weeks. American Electric Power stock has returned 15.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 8.6%. Moreover, shares of AEP are up 13.5% on a YTD basis, compared to SPX's 3.8% decline.
Looking closer, the utility company has also outpaced the Utilities Select Sector SPDR Fund's (XLU) 12.5% return over the past 52 weeks.
Shares of AEP remained unchanged on May 6 after the company reported a strong Q1 2025 earnings report that featured adjusted EPS of $1.54, beating the consensus estimate and rising 21.3%. Revenue reached $5.5 billion, an 8.7% increase and exceeded the consensus estimate. Segmental strength contributed to the gains, with notable year-over-year increases in operating earnings across Vertically Integrated Utilities, Transmission & Distribution Utilities, and AEP Transmission Holdco. Investor sentiment was further supported by the company reaffirming its 2025 operating EPS guidance of $5.75 - $5.95 and maintaining a long-term EPS growth projection of 6% - 8%.
For the fiscal year ending in December 2025, analysts expect AEP's adjusted EPS to grow 4.3% year-over-year to $5.86. The company's earnings surprise history is promising. It beat or met the consensus estimates in the last four quarters.
Among the 19 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, 12 “Holds,” and one “Strong Sell.”
On Apr. 23, Morgan Stanley issued a research report assigning an "Overweight" rating to American Electric Power and set a price target of $114.
As of writing, AEP is trading below the mean price target of $109.83. The Street-high price target of $120 implies a potential upside of 14.6%.
On the date of publication, Sohini Mondal 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.