Latest news with #AmericanElectric
Yahoo
25-06-2025
- Business
- Yahoo
American Electric to Gain From Investments and Renewable Expansion
American Electric Power Company, Inc. AEP is consistently investing in infrastructure enhancements to improve operational reliability and meet rising customer needs effectively. The company is also investing in expanding its renewable generation this Zacks Rank #3 (Hold) company faces risks related to a weak solvency position. American Electric plans to invest $54 billion in electricity generation, transmission and distribution operations, including renewables, between 2025 and 2029. The company anticipates that this systematic investment will aid in the long-term earnings growth of 6-8%.The company's geographically diversified operations allow it to benefit from revenues generated from different states compared to its single-state utility peers. AEP manages the country's largest electricity transmission system, which consists of around 40,000 circuit miles of transmission lines, including nearly 2,100 circuit miles of 765 kV lines that serve as the cornerstone of the eastern United States' electric interconnection Electric has been paying heavily to develop its renewable generation portfolio. In 2024, the company obtained regulatory approval from several state regulatory commissions to acquire approximately 2,303 megawatts (MWs) of owned renewable generating facilities for $5.5 billion in investments. Between 2025 and 2029, the company aims to invest $9.9 billion in regulated renewable expansion. These measures should dramatically boost American Electric's renewable generation portfolio. As of March 31, 2025, American Electric Power had 23,200 MW of generating capacity, with 10,700 MW being coal-fired. The company is evaluating the effects of four new Environmental Protection Agency regulations on its generating fleet, which may significantly impact its operating results as it refines cost estimates for complying with these regulations while meeting its obligations to provide reliable and affordable of March 31, 2025, American Electric had $38.81 billion in long-term debt, while its cash equivalents totaled $0.50 billion. As of the same date, its current debt was $7.53 billion. As both AEP's current and long-term debt levels remained far greater than its cash reserve, the company seems to have a weak position concerning its solvency. In the past six months, AEP shares have risen 12.2% compared with the industry's growth of 6.6%. Image Source: Zacks Investment Research Some better-ranked stocks from the same industry are Fortis FTS, CenterPoint Energy CNP and NiSource Inc. NI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks long-term (three to five years) earnings growth rate is 5%. The Zacks Consensus Estimate for its 2025 earnings per share (EPS) stands at $2.47, which calls for a year-over-year jump of 3.4%.CNP's long-term earnings growth rate is 7.8%. The Zacks Consensus Estimate for its 2025 EPS stands at $1.75, which indicates a year-over-year rally of 8%.NI's long-term earnings growth rate is 7.9%. The Zacks Consensus Estimate for its 2025 EPS is pegged at $1.88, which implies a year-over-year rise of 7.4%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NiSource, Inc (NI) : Free Stock Analysis Report American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report Fortis (FTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Business Insider
13-06-2025
- Business
- Business Insider
American Electric initiated with an Outperform at Raymond James
Raymond James analyst J.R. Weston initiated coverage of American Electric (AEP) with an Outperform rating and $115 price target Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Yahoo
12-06-2025
- Business
- Yahoo
American Electric to recover $1.5B from insurers
AerCap Holdings has announced that in a judgment the Commercial Court in London found that its subsidiary, AerCap Ireland Limited, is entitled to recover its claim for an indemnity of approximately $1B from the insurers under the 'War and Allied Perils' Coverage section of its contingent and possessed insurance policy. This award is in respect of the aircraft and engines which AerCap and its affiliates formerly leased to Russian airlines and were not recovered from Russia following its invasion of Ukraine in February 2022. The indemnity amount is due to be paid by July 2. All questions of interest and costs are adjourned to a further hearing to be fixed in September. In 2022, the company recognized a pre-tax net charge of $2.7B to earnings, which included a total loss write-off with respect to the assets which remained in Russia and Ukraine and impairment losses with respect to the assets which we had recovered from Russia and Ukraine at that time. Following recoveries of $1.3B in 2023 and $195M in 2024, this indemnity award will bring AerCap's total pre-tax recoveries relating to the Ukraine conflict to approximately $2.5B. The claims against insurers and reinsurers of the Russian airlines' insurance policies in respect of a number of these assets remain ongoing in the Commercial Court in London and we intend to continue to vigorously pursue those claims. However, the collection, timing and amount of any potential further recoveries in respect of those claims are uncertain. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on AEP: Disclaimer & DisclosureReport an Issue American Electric Power Finalizes $2.82 Billion Partnership American Electric price target raised to $100 from $95 at UBS American Electric closes on transmission investment strategic partnership Bloom Energy projects with American Electric, Amazon approved by PUCO PUCO approvals removes regulatory overhang for Bloom Energy, says Morgan Stanley Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
04-03-2025
- Business
- Globe and Mail
1 Safe Dividend Stock to Buy Now as a Full-Blown Trade War Begins
New tariffs on Canada and Mexico, as well as increased tariffs on China, took effect on Tuesday, March 4, delivering on threats from President Donald Trump. Canada was the first to retaliate, announcing counter-tariffs on U.S. goods. China, which 'firmly rejected' the tariffs, also announced tariffs on some U.S. goods. Overall, a full-blown trade war now looks set to begin, with the countries impacted by Trump's tariffs announcing countermeasures. The escalating trade war is taking a toll on U.S. stocks, and after the meltdown on March 3, the S&P 500 Index ($SPX) has turned negative for the year. Notably, U.S. stocks crashed in the second half of 2018 amid the escalating trade war in Trump's first term. This time around, Trump started imposing tariffs right at the beginning of his second term, and their repercussions are being felt in broader markets. Given the U.S.'s reliance on imports – something Trump is seeking to address with the trade actions – the tariffs are expected to cause a lot of disruption and add additional costs for many sectors, such as the automotive industry. Unsurprisingly, share prices of companies that rely heavily on imports and have global supply chains are in the red this year. This includes the likes of Ford (F), General Motors (GM), and HP (HPQ). At least in the short term, the tariffs are borne by consumers and U.S. companies importing these goods. As the witty Warren Buffett perfectly said, 'Over time, [tariffs] are a tax on goods. I mean, the Tooth Fairy doesn't pay 'em!" Amid the uncertain macroeconomic environment and trade war fears, investors can find solace in safer bets. I believe American Electric Power (AEP) looks like a good stock to buy now, especially for investors looking for safe dividend stocks. 3 Reasons to Buy AEP Stock Now American Electric is among the largest electricity producers in the U.S. and boasts the largest transmission network, spanning 40,000 miles. I find AEP stock a good buy for the following three reasons. Regulated Utility Trading at Reasonable Valuations: AEP is a regulated entity whose earnings are quite predictable and linear. Last year, it posted operating earnings per share (EPS) of $5.62, which it expects to rise to between $5.75 and $5.95 in 2025. The stock trades at 18.3x its expected earnings over the next 12 months, and the valuation multiples are similar to their 10-year averages. Data Center and AI Opportunity: There has been a renewed interest in power companies amid the growing demand for data centers. While the artificial intelligence (AI)-driven euphoria in markets has subsided, it does not look like a boom-bust story, at least for now. Growing electricity demand from data centers bodes well for names like American Electric. Growth Capex and Possible Reshoring: American Electric is looking to invest $54 billion over five years until 2029 to grow its production as well as transmission assets. While a lot of companies face headwinds from Trump's tariffs, reshoring could help fuel power demand in the U.S. Incidentally, during its Q4 2024 earnings call, AEP listed reshoring along with manufacturing and data center demand as key growth drivers for the additional capacity it is setting up. AEP Stock Forecast AEP has a consensus rating of 'Moderate Buy' from analysts, and the stock has run ahead of its mean target price of $103.12 amid the double-digit YTD rally. The Street-high target price of $113 is also just about 6% higher than the curernt share price. That said, I find American Electric a good buy – especially for those looking for quality and safe dividends. AEP currently has a dividend yield of 3.5%, which looks quite healthy. The company is targeting long-term annual earnings per share (EPS) growth between 6%-8%, and its dividend growth should mimic that number. While the stock might not be a multibagger as it is unfair to expect outsized gains from regulated utilities, amid the current macro environment, AEP is perfect for risk-averse investors hunting for stocks with high dividend yields.
