Latest news with #AmericanElectricPowerCompany
Yahoo
10-07-2025
- Business
- Yahoo
Implied Volatility Surging for American Electric Power Stock Options
Investors in American Electric Power Company, Inc. AEP need to pay close attention to the stock based on moves in the options market lately. That is because the Jul 18, 2025 $135 Call had some of the highest implied volatility of all equity options today. Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy. Clearly, options traders are pricing in a big move for American Electric Power shares, but what is the fundamental picture for the company? Currently, American Electric Power is a Zacks Rank #3 (Hold) in the Utility - Electric Power industry that ranks in the Top 33% of our Zacks Industry Rank. Over the last 30 days, the Zacks Consensus Estimate for the current quarter has moved from $1.25 per share to $1.23 in that the way analysts feel about American Electric Power right now, this huge implied volatility could mean there's a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected. Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your to see the trades now >> 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 American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
09-07-2025
- Business
- Yahoo
American Electric Power Company (AEP) Bolsters Management Team
American Electric Power Company Inc. (NASDAQ:AEP) is . On June 17, the company named a new general counsel and technology chief, expected to support its long-term strategy. A high power electrical transformer station with transmission lines connecting to a power grid. Rob Berntsen will become executive vice president and general counsel, effective July 14. Berntsen joins American Electric Power Company from Xcel, where he served as executive vice president and chief legal and compliance officer. On the other hand, Johannes Eckert takes over as the executive vice president and chief information and technology officer, effective July 21. Eckert joins the company, having served as senior vice president and chief information officer at Cox Communications. The appointment comes as American Electric Power Company Inc. (NASDAQ:AEP) operates the nation's largest electric transmission system, serving 5.6 million customers. As one of the best defensive stocks, the company generates, transmits, and distributes electricity. It also produces power using various sources, including coal, lignite, natural gas, wind, solar, nuclear, and hydroelectric sources. While we acknowledge the potential of AEP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. 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
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
Yahoo
08-05-2025
- Business
- Yahoo
American Electric Power Company, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
American Electric Power Company, Inc. (NASDAQ:AEP) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 5.4% to hit US$5.5b. Statutory earnings per share (EPS) came in at US$1.50, some 8.1% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on American Electric Power Company after the latest results. We've discovered 2 warning signs about American Electric Power Company. View them for free. Following the latest results, American Electric Power Company's 15 analysts are now forecasting revenues of US$21.0b in 2025. This would be an okay 4.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 13% to US$5.87. In the lead-up to this report, the analysts had been modelling revenues of US$21.3b and earnings per share (EPS) of US$5.88 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates. View our latest analysis for American Electric Power Company There were no changes to revenue or earnings estimates or the price target of US$109, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on American Electric Power Company, with the most bullish analyst valuing it at US$120 and the most bearish at US$95.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects. Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of American Electric Power Company'shistorical trends, as the 5.3% annualised revenue growth to the end of 2025 is roughly in line with the 6.6% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 4.7% per year. It's clear that while American Electric Power Company's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself. The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$109, with the latest estimates not enough to have an impact on their price targets. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for American Electric Power Company going out to 2027, and you can see them free on our platform here. You still need to take note of risks, for example - American Electric Power Company has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
17-04-2025
- Business
- Yahoo
Is American Electric Power Company, Inc. (AEP) the Best Large-Cap Value Stock to Buy as the Recession Hits?
We recently published a list of . In this article, we are going to take a look at where American Electric Power Company, Inc. (NASDAQ:AEP) stands against other best large-cap value stocks to buy as the recession hits. Goldman Sachs highlighted that equities around the world traded in and out of a bear market — which is often defined as a 20% decline from the recent peak. According to Peter Oppenheimer, chief global equity strategist at Goldman Sachs Research, the history of bear markets can provide some clues regarding the duration and severity of such downturns. U.S. stocks ended significantly higher after Trump announced his decision to put a 90-day pause on the additional country-specific portion of the reciprocal tariffs. That being said, Oppenheimer believes that a sustained rebound isn't yet in place. As per the strategist, the valuations are required to adjust further before equities can shift into the 'hope' phase of the next cycle. With the Q1 2025 earnings season underway, Morningstar informs that investors can expect more focus than usual on what companies want to say regarding their outlooks, while the uncertainty surrounding tariffs means offering weaker, less confident, or even no guidance. Tariffs can impact the corporate bottom lines in several ways, both directly and indirectly. Notably, the increased import costs put more pressure on the margins. While some firms can decide to alleviate the pressure by increasing the prices for customers, others can choose to absorb them, says the firm. Morningstar, while quoting FactSet's consensus estimates, mentioned that analysts expect 6.8% earnings growth in Q1 for companies in the S&P 500 benchmark index. For the full year, analysts anticipate an 11.2% growth. READ ALSO: and . Forward guidance is what generally moves the financial markets. If the firm warns that there can be a possibility to see smaller profits, the stock tends to fall. This might happen across the market, but there is a silver lining. As per Morningstar chief research and investment officer Dan Kemp, it is important to note that most of the value lies in the future. Therefore, the impact on the company's real value is expected to be muted. According to him, widening of the gap between stock prices and future real values can be a very fertile soil for the market investors. Christian Mueller-Glissmann, head of asset allocation research within portfolio strategy for Goldman Sachs Research, says that investors need to think about diversifying regionally and across styles. To be specific, this consists of low-volatility stocks, i.e., equities from more defensive sectors, that fluctuate less than the broader market. To list the 15 Best Large-Cap Value Stocks to Buy as the Recession Hits, we considered companies from the industries which are expected to be resilient in a recessionary environment, such as utilities, healthcare, and consumer. Next, we chose the stocks that trade at a forward P/E of less than ~20.0x. Finally, the stocks are arranged in ascending order of the hedge fund sentiments, as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A series of large electrical transmission towers providing power to the public. American Electric Power Company, Inc. (NASDAQ:AEP) is an electric public utility holding company. It is engaged in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers. BMO Capital remains optimistic about the company's stock as the firm sees its equity raise positively because it removes the equity/credit overhang on the stock. On March 24, American Electric Power Company, Inc. (NASDAQ:AEP) announced pricing of the registered underwritten offering of 19,607,844 shares of common stock at a price to the public of $102.00 per share. The focus on decarbonizing the generation fleet remains in line with the overall industry trends and regulatory pressures to reduce carbon emissions. The transition to clean energy can create numerous investment prospects in renewable generation, energy storage, and grid modernization. American Electric Power Company, Inc. (NASDAQ:AEP)'s large service territory offers numerous opportunities to allocate capital in such areas. In 2024, the company saw significant load growth in its commercial class, mainly because of economic development in Indiana, Ohio, and Texas. American Electric Power Company, Inc. (NASDAQ:AEP) expects an 8% – 9% annual total retail load growth from 2025-2027 and targets to serve over 20 gigawatts of new load by the decade's end. The company's $54 billion, 5-year capital plan supports the opportunity. Overall, AEP ranks 14th on our list of best large-cap value stocks to buy as the recession hits. While we acknowledge the potential of AEP as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than AEP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
