American Electric Power Company, Inc. (AEP) Buy or Sell Stock Guide

Last updated: Mar 11, '19

The analysis below may be helpful to you if you have any of the following questions about AEP stock:

  • Is AEP a buy or a sell?
  • Should I sell or hold AEP stock today?
  • Is AEP a good buy / a good investment?
  • What are AEP analyst opinions, recommendations, ratings?

Here are AEP stock buy reasons/signals:

1. Investments in transmission and environmental improvements during the next several years should support strong earnings growth.

2. AEP earns regulated returns in many different state jurisdictions, protecting its earnings from the impact of one adverse regulatory ruling.

3. Management continues to move the company toward being a fully regulated utility.

4. AEP forward dividend yield is 3.29%, higher than the industry (1.20%) and sector (1.02%) forward dividend yields.

5. AEP average analyst rating is Buy.

Here are AEP stock sell reasons/signals:

1. AEP's Ohio generation assets are predominantly coal, putting the firm at a cost disadvantage in a period of low natural gas prices.

2. Greenhouse gases are a long-term problem for the company's coal plants because there is currently no economically feasible technology to eliminate carbon dioxide emissions.

3. AEP has significant operations in Ohio, which has one of the most unstable regulatory environments in the country.

4. AEP stock price ($81.96) is at the 52-week high. Perhaps now is a good time to sell?

5. AEP quarterly revenue growth was -0.20%, lower than the industry and sector average revenue growth (4.29% and 4.79%, respectively).

6. AEP profitability is declining. The YoY profit margin change was -0.52pp.

7. AEP average analyst price target ($81.63) is below its current price ($81.96).

8. AEP short interest (days to cover the shorts) ratio is 3.75. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on AEP?

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