DailyIQ
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Sector:UtilitiesAll sectors
Last updated 5 minutes ago

AEP·American Electric Power Company, Inc.

$.
+. (+.%)
After Hours
High
$135.62
Open
$133.84
Market Cap
73.58B
52W High
$140.58
Low
$133.76
P. Close
$135.43
P/E
20.14
52W Low
$103.03
Fwd P/E
19.74
DailyIQ Est.
$147.81
Technical Score (1D)
73
BUY
News Sentiment
70
BULLISH
UBS raised its price target for AEP to $145 from $138, citing expectations of stronger regulated rate hikes and improved operating margins. The upgrade signals a reassessment of valuation that could prompt a short‑term rally as traders adjust risk profiles. Meanwhile, the U.S. Department of Energy closed a $3.26 billion loan to AEP Texas, earmarked for grid upgrades and renewable integration, strengthening the balance sheet. The infusion of capital will likely accelerate infrastructure projects, improving reliability and potentially boosting future earnings. The combination of a higher target and robust financing positions AEP for a more favorable earnings outlook in the next few weeks. Data‑center demand growth has also been cited as a catalyst, suggesting that the company could benefit from higher power consumption in the near term. Traders should watch the upcoming Q2 earnings release for confirmation of the projected single‑digit net income growth and any guidance on rate adjustments. Additionally, monitor how the DOE loan is deployed, as delays or cost overruns could temper the upside. Finally, keep an eye on any regulatory updates that could affect rate‑setting or renewable portfolio standards, as these will shape margin expectations.
Earnings Summary
American Electric Power (AEP) is a vertically integrated utility serving 5.6 million customers across the United States, operating a diversified generation mix that includes coal, natural gas, renewables, and nuclear, and managing a 40,000‑mile transmission network; the company operates within the regulated electric utilities sector, which is characterized by stable demand and regulatory oversight. In the most recent quarters, AEP reported Q4 2024 revenue of $4.70 billion with EPS of $1.24, narrowly missing the $1.2424 estimate, while Q1 2025 revenue rose to $5.46 billion and EPS of $1.54 beat the $1.40176 forecast; Q2 2025 revenue fell to $5.09 billion with EPS of $1.43 versus an estimate of $1.26734, and Q3 2025 revenue climbed to $6.01 billion with EPS of $1.80 just shy of the $1.80502 target; Q4 2025 revenue increased to $5.31 billion and EPS of $1.19 exceeded the $1.14059 estimate, and Q1 2026 revenue reached $6.02 billion with EPS of $1.64 beating the $1.57009 forecast, indicating a pattern of revenue growth and frequent EPS beats in the last five quarters. Historically, AEP has maintained a steady upward trajectory in revenue year over year, with EPS generally outperforming analyst expectations in the most recent periods, while the company has managed to sustain growth even when some quarters saw modest EPS misses; this consistency underscores the utility’s resilience amid regulatory and market shifts. Recent analyst commentary highlights a potential 30 % valuation premium driven by expanding data‑center demand, Jefferies and Morgan Stanley upgrades to price targets citing renewable expansion and AI‑driven projects, and a broader utilities sector decline that positions AEP as a comparatively attractive play; these developments suggest that investor sentiment may be sensitive to data‑center growth indicators and regulatory updates. Investors should watch for the upcoming Q2 2026 earnings release, particularly the EPS figure once available, any guidance on data‑center contract revenue, and updates on renewable capacity additions or AI‑enabled projects, as these factors will likely shape the company’s short‑term valuation narrative.

EPS

EstBeatMiss
$1.04$1.26$1.47$1.69$1.90Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.50 - -
Q1'26$1.57$1.64+4.5%
Q4'25$1.14$1.19+4.3%
Q3'25$1.81$1.80-0.3%
Q2'25$1.27$1.43+12.8%
Q1'25$1.40$1.54+9.9%

Revenue

EstBeatMiss
$4.9B$5.3B$5.6B$5.9B$6.2BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$5.5B - -
Q1'26$5.6B$6.0B+7.9%
Q4'25$5.1B$5.3B+3.4%
Q3'25 - $6.0B -
Q2'25 - $5.1B -
Q1'25 - $5.5B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

AEP Stock Snapshot

AEP is currently trading at $133.92, giving American Electric Power Company, Inc. a market cap of 73.58B and a P/E ratio of 20.1. Today's range spans $133.76–$135.62, with shares opening at $133.84 and moving down $1.51 (1.1%) from the prior close. DailyIQ's technical score sits at 73/100 (BUY) with a news sentiment reading of 70/100.

Over the past year AEP has traded between $103.03 and $140.58 - the current price is +30.0% off the 52-week low and -4.7% from the high. 30 analysts cover the stock with a Hold consensus and a mean 12-month target of $145.43 (range $133.00–$173.00), implying upside of +8.6%.

The breakout geometry on AEP is constructive - price at $133.92 (in the upper portion of its 52-week range in $103.03–$140.58), scoring 73/100 (BUY) with bullish sentiment (70/100). (P/E: 20.1) At 73.58B in Utilities market cap, technical breakouts through prior resistance at this capitalization tier tend to be better validated than in smaller-cap peers - institutional participation means that cleared levels attract follow-through buying rather than immediate fade behavior.

The combination of a BUY signal (73/100) and bullish news sentiment (70/100) puts AEP on the screens of active managers who run quality-momentum overlays — a cohort that can build meaningful positions at 73.58B in Utilities market cap without immediately moving the stock. At $133.92 (in the upper portion of its 52-week range in the $103.03–$140.58 range), the entry discipline is clean and the potential re-rating if sentiment continues to improve is meaningful.