American Electric Power Company, Inc. (AEP), headquartered in Columbus, Ohio, generates, transmits, and distributes electricity for sale to retail and wholesale customers. With a market cap of $70.8 billion, the company operates approximately 225,000 circuit miles of distribution lines that delivers electricity to 5.6 million customers.
Shares of this domestic electric utility company have underperformed the broader market over the past year. AEP has gained 23.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 30.6%. However, in 2026, AEP stock is up 12.9%, surpassing the SPX’s 8.1% rise on a YTD basis.
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Narrowing the focus, AEP’s outperformance is apparent compared to State Street Utilities Select Sector SPDR ETF (XLU). The exchange-traded fund has gained about 11.7% over the past year. Moreover, AEP’s double-digit returns on a YTD basis outshine the ETF’s 4.8% gains over the same time frame.
On May 5, AEP shares closed up by 1.8% after reporting its Q1 results. Its adjusted EPS of $1.64 exceeded Wall Street expectations of $1.55. The company’s revenue was $6 billion, beating Wall Street forecasts of $5.7 billion. AEP expects full-year adjusted EPS in the range of $6.15 to $6.45.
For the current fiscal year, ending in December, analysts expect AEP’s EPS to grow 6.4% to $6.35 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 24 analysts covering AEP stock, the consensus is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, one “Moderate Buy,” and 11 “Holds.”
This configuration is more bullish than a month ago, with 10 analysts suggesting a “Strong Buy.”
On May 8, Raymond James Financial, Inc. (RJF) kept an “Outperform” rating on AEP and raised the price target to $144, implying a potential upside of 10.6% from current levels.
The mean price target of $142.95 represents a 9.8% premium to AEP’s current price levels. The Street-high price target of $153 suggests an upside potential of 17.5%.
On the date of publication, Neha Panjwani 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. This article was originally published on Barchart.com
