With a market capitalization of $55.9 billion, American Electric Power Company, Inc. (AEP) ranks among the largest electric utility holding companies in the United States. The company supplies electricity to 5.6 million customers across 11 states and operates through several business segments, including electricity generation, transmission, distribution, and energy marketing.

Over the past 52 weeks, shares of the Columbus, Ohio-based company have outperformed the broader market. AEP’s stock has returned 15.1% during this period, while the S&P 500 Index ($SPX) has rallied 8.6%. Year-to-date, AEP shares are up 13.5%, contrasting with the S&P’s decline of 3.8%.

Additionally, AEP has surpassed the Utilities Select Sector SPDR Fund’s (XLU) 12.5% return over the same time frame.

On May 6, AEP shares remained unchanged after reporting strong Q1 2025 earnings. The company posted an adjusted EPS of $1.54, exceeding the consensus estimate by 21.3%. Revenue reached $5.5 billion, marking an 8.7% increase and surpassing expectations. Various segments contributed to these gains, with notable increases in operating earnings across Vertically Integrated Utilities, Transmission & Distribution Utilities, and AEP Transmission Holdco. Investor sentiment was bolstered further as the company reaffirmed its 2025 operating EPS guidance of $5.75 – $5.95, maintaining a long-term EPS growth projection of 6% – 8%.

For the fiscal year ending December 2025, analysts predict AEP’s adjusted EPS will grow 4.3% year-over-year to $5.86. The company has a strong track record, having met or beaten consensus estimates in the last four quarters.

A consensus rating among the 19 analysts covering the stock reflects a “Moderate Buy,” based on six “Strong Buy” ratings, 12 “Holds,” and one “Strong Sell.”

On April 23, Morgan Stanley released a research report assigning an “Overweight” rating to American Electric Power and set a price target of $114.

Currently, AEP is trading below the average price target of $109.83. The highest price target of $120 suggests a potential upside of 14.6%.

On the date of publication, Sohini Mondal did not hold (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. For further details, please refer to the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.