AEP stock: buy or sell?
Updated on:
September 20th, 2019
5
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.
Should I buy AEP stock?
You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to choose your own trading strategy that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.Currently, 2 buy setups match with American Electric Power stock right now:
| Buy setup | Elegible |
|---|---|
| New all-time high | Yes |
| New 52 week high | Yes |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is American Electric Power stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.
At Stocks2.com, we gathered 15 ratings published for AEP stock in the last 30 days. The general sentiment of these ratings is bullish for AEP stock, with 8 positive ratings.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-9-20 | UBS Group | n/a | Buy |
| 2019-8-16 | Morgan Stanley | n/a | Equal Weight |
| 2019-8-12 | SunTrust Banks | n/a | Buy |
| 2019-7-9 | Bank of America | Buy | Buy |
| 2019-7-12 | UBS Group | n/a | Buy |
| 2019-6-14 | Morgan Stanley | n/a | Equal Weight |
| 2019-6-14 | Morgan Stanley | n/a | Equal Weight |
| 2019-5-9 | UBS Group | Buy | Buy |
| 2019-5-16 | Morgan Stanley | n/a | Equal Weight |
| 2019-4-8 | Goldman Sachs Group | Buy | Neutral |
| 2019-4-26 | Wells Fargo & Co | Outperform | Outperform |
| 2019-4-18 | Morgan Stanley | Overweight | Equal Weight |
| 2019-3-12 | JPMorgan Chase & Co. | Neutral | Overweight |
| 2019-2-12 | Morgan Stanley | Overweight | Overweight |
| 2019-1-7 | Guggenheim | Buy | Neutral |
AEP stock analysis
Daily outlook
After reaching all time highs today, American Electric Power remained constant -0.02% today to $93.16.
American Electric Power shares set new all time highs again today, marking to $93.56. Shares ended at $93.16 and remained stable -0.02%. From a daily outlook perspective, AEP is drawing an uptrend of rising tops and rising bottoms. Since its last top on September/4 at $93.23, price slid and bounced up back from $90.08. Crossing $93.23 with intention in the next few days will confirm this strong uptrend. For the last 36 days when AEP stock price broke up the SMA50d line, it gained $4.68 (5.29%).
Weekly outlook
American Electric Power shares set new all time highs back again this week, marking to $93.56. Shares closed at $93.16 and inched 1.77% during the week.
In a weekly time frame, American Electric Power stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, AEP might consolidate in a flat-base, waiting to break out over or down under . Early January AEP price bounced up over the SMA of 20 weeks that acted as support stopping new slides.
AEP stock price history
AEP stock historical price chart
AEP stock reached all-time highs today with a price of $93.56.
AEP stock price target is $92.80
Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 12 price predictions for American Electric Power stock:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-9-20 | UBS Group | Reiterates | $100.00 | $105.00 | 5% |
| 2019-8-16 | Morgan Stanley | Lowers Target | $93.00 | $91.00 | -2.2% |
| 2019-8-12 | SunTrust Banks | Raises Target | $98.00 | $99.00 | 1% |
| 2019-7-9 | Bank of America | Reiterates | $93.00 | $98.00 | 5.4% |
| 2019-7-12 | UBS Group | Raises Target | $94.00 | $100.00 | 6.4% |
| 2019-6-14 | Morgan Stanley | Reiterates | $88.00 | $92.00 | 4.5% |
| 2019-6-14 | Morgan Stanley | Raises Target | $88.00 | $92.00 | 4.5% |
| 2019-5-9 | UBS Group | Raises Target | $89.00 | $94.00 | 5.6% |
| 2019-5-16 | Morgan Stanley | Raises Target | $87.00 | $88.00 | 1.1% |
| 2019-4-8 | Goldman Sachs Group | Downgrades | n/a | $78.00 | - |
| 2019-4-26 | Wells Fargo & Co | Raises Target | $89.00 | $93.00 | 4.5% |
| 2019-2-12 | Morgan Stanley | Raises Target | $81.00 | $84.00 | 3.7% |
| (in average) | $90.90 | $92.80 | 2.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
Since April, when American Electric Power published its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 0.76 | n/a |
| 2017-Q3 | 2017-10-26 | 1.16 | 1.1 | -5.2% |
| 2017-Q4 | 2018-01-25 | 0.79 | 0.85 | 7.6% |
| 2018-Q1 | 2018-04-26 | 0.99 | 0.96 | -3.0% |
| 2018-Q2 | 2018-07-25 | 0.88 | 1.01 | 14.8% |
| 2018-Q3 | 2018-10-25 | 1.23 | 1.25 | 1.6% |
| 2018-Q4 | 2019-01-24 | 0.72 | 0.72 | 0.0% |
| 2019-Q1 | 2019-04-24 | 1.04 | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
In 2018, American Electric Power annual turnover grew a good 5.00% to $16,195.70 M dollars from $15,424.90 marked in 2017. Slightly worse, its earnings margin (compared to revenues) remained constant to 11.88%, that is $1,923.80 million. American Electric Power fiscal year ends in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, American Electric Power TTM sales up to March 2019 were $16,204.20 and income $2,042.20 million dollars. If we compare this TTM figures with the last reported annuality, we can esteem American Electric Power business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, remained constant a tight 0.05%. Aligned with this, profit margin (net income/sales) stayed stable at 11.88%.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $15,290 M | - | $1,480 M9.7% | - |
| 2014 | $17,020 M | 11.31% | $1,634 M9.6% | 10.41% |
| 2015 | $16,453 M | -3.33% | $2,047 M12.4% | 25.28% |
| 2016 | $16,380 M | -0.44% | $611 M3.7% | -70.16% |
| 2017 | $15,425 M | -5.83% | $1,913 M12.4% | 213.08% |
| 2018 | $16,196 M | 5.00% | $1,924 M11.9% | 0.59% |
| TTM | $16,204 M | 0.05% | $2,042 M12.6% | 6.15% |
Quarterly financial results
American Electric Power posted $4,056.80 M in sales for 2019-Q1, a 6.73% improvement compared to previous quarter. Reported quarter earnings marked $572.80 M with a profit margin of 14.12%. Profit margin stepped up a 4.56% compared to previous quarter when profit margin was 9.56%. When comparing revenues to same quarter last year, American Electric Power sales marked a neutral move and stayed stable a 0.21%.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $3,570 M | - | $375 M10.5% | - |
| 2017-Q3 | $4,090 M | 14.57% | $545 M13.3% | 45.25% |
| 2017-Q4 | $3,810 M | -6.84% | $401 M10.5% | -26.44% |
| 2018-Q1 | $4,048 M | 6.24% | $454 M11.2% | 13.40% |
| 2018-Q2 | $4,013 M | -0.87% | $528 M13.2% | 16.29% |
| 2018-Q3 | $4,333 M | 7.97% | $578 M13.3% | 9.31% |
| 2018-Q4 | $3,801 M | -12.28% | $363 M9.6% | -37.08% |
| 2019-Q1 | $4,057 M | 6.73% | $573 M14.1% | 57.62% |
American Electric Power ownership
When you are planning to invest in a stock, it's always worth to check its ownership structure.Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For American Electric Power, 0.02% of all outstanding shares are owned by its staff.
In case of American Electric Power stock, 75.76% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for AEP stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to American Electric Power:
| AEP | AES | D | DUK | ETR | |
|---|---|---|---|---|---|
| Market cap | $46.0 B | $10.6 B | $64.9 B | $68.8 B | $22.9 B |
| Total shares | 493.8 M | 663.9 M | 803.4 M | 728.6 M | 198.8 M |
| Float shares | 493.2 M | 661.1 M | 800.7 M | 727.6 M | 198.1 M |
| - Institutional holdings (%) | 75.8% | 97.4% | 60.2% | 61.7% | 91.2% |
| - Insider holdings (%) | 0.0% | 0.4% | 0.3% | 0.1% | 0.3% |
| Shares in short selling | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
AEP summary
| Friday, September 20th, 2019 | |
|---|---|
| Open | $93.33 |
| Close | $93.16 |
| Day range | $92.89 - $93.56 |
| Previous close | $93.18 |
| Session gain | -0.02% |
| Average true range | $1.18 |
| 50d mov avg | $90.31 |
| 100d mov avg | $88.72 |
| 200d mov avg | $83.61 |
| Daily pattern | lb03b |
| Weekly pattern | lt06a |
American Electric Power performance
Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For American Electric Power, the comparison is made against The AES, Dominion Energy, Duke Energy, Entergy, Exelon, NRG Energy, PPL, Southern and Xcel Energy.| Stock | 3m | 6m | 12m |
|---|---|---|---|
| AEPAmerican Electric... | 2.52% | 11.13% | 34.86% |
| AESThe AES | -4.09% | -10.24% | 18.15% |
| DDominion Energy | 4.38% | 9.59% | 19.59% |
| DUKDuke Energy | 6.66% | 6.42% | 23.52% |
| ETREntergy | 11.33% | 21.91% | 44.88% |
| EXCExelon | -3.10% | -2.16% | 14.43% |
| NRGNRG Energy | 10.42% | -8.53% | 7.63% |
| PPL | 0.73% | 0.67% | 12.08% |
| SOSouthern | 9.76% | 20.42% | 45.56% |
| XELXcel Energy | 5.09% | 14.10% | 39.18% |
American Electric Power competitors
We selected a few stocks to conform a list of American Electric Power competitors to examine if you are interested in investing in AEP:- The AES (AES)
- Dominion Energy (D)
- Duke Energy (DUK)
- Entergy (ETR)
- Exelon (EXC)
- NRG Energy (NRG)
- PPL (PPL)
- Southern (SO)
- Xcel Energy (XEL)
Latest AEP stock news
- InvestorPlace3 Big Stock Charts for Thursday: Unum Group, Emerson Electric and American Electric PowerDecember 6, 2018
- InvestorPlace3 Big Stock Charts for Thursday: CBS, Ford and American Electric PowerNovember 8, 2018