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American Electric Power Company (AEP) Stock Analysis

Breakout setup

HoldVALUE-TRAP 1/5Moderate Confidence

Utilities · Utilities - Regulated Electric

Earnings in 3 days (2026-05-05). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Hold if already holding. Not a fresh buy at $136.88, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (0.6% away).

American Electric Power is a public utility holding company providing electric generation, transmission, and distribution across portions of 11 states through regulated subsidiaries. Revenue comes from regulated electric tariffs covering ~6.7M retail customers across vertically... Read more

$136.88+14.1% A.UpsideScore 5.3/10#18 of 40 Utilities - Regulated Electric
Entry $118.92(200-day MA)Stop $114.36Target $135.72(resistance)A.R:R -1.4:1Setup A.R:R 3.7:1
Analyst target$141.38+3.3%21 analysts
$135.72our TP
$136.88price
$141.38mean
$130
$169

Hold if already holding. Not a fresh buy at $136.88, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (0.6% away). Chart setup: Golden cross, above all MAs, RSI 59, MACD bullish. Downgraded from BUY WAIT — price $136.94 has reached target $135.72. No upside to wait for. Score 5.3/10, moderate confidence.

Passes 5/7 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 3d<=7d. Suitability: moderate.

Val5.2Qual4.7Grw2.9Mom6.7Sent6.4Ins5.0Peer6.2Tech4.4Risk6.95.3OVERALL

Thesis

Rewards
No bull case signals
Risks
Analyst target reached - limited upside remaining
Near 52-week high (0.6% away)
Leverage penalty (D/E 1.5): -1.0

Key Metrics

P/E (TTM)20.6
P/E (Fwd)19.9
Mkt Cap$74.5B
EV/EBITDA13.9
Profit Mgn16.4%
ROE12.5%
Rev Growth13.2%
Beta0.57
Dividend2.77%
Rating analysts28

Quality Signals

Piotroski F6/9

Options Flow

P/C0.82neutral
IV46%normal

Concentration Risks(10-K Item 1A)

  • MEDIUMCommodityCoal and Lignite43%
    10-K Item 1: 'Coal and Lignite | 43%'
  • MEDIUMCustomerAEP Texas two largest REPs38%
    10-K Item 1A: 'In 2025, AEP Texas' two largest REPs accounted for 38% of its operating revenue.'

Material Events(8-K, last 90d)

  • 2026-02-17Item 5.02LOW
    Director Henry P. Linginfelter notified Board on February 13, 2026 that he will not stand for re-election at 2026 Annual Meeting. Decision not due to any disagreement with Company. No successor named.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
0.0
Revenue Growth
5.8
GatesA.R:R -1.4=NEGATIVEEARNINGS PROXIMITY 3d<=7dMomentum 6.7>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARBreakoutSuitability: Moderate
RSI
59 · Neutral
↑ 20D MA↑ 50D MA↑ 200D MAGOLDEN CROSSSupport $131.20Resistance $138.49

Price Targets

$114
$119
$136
A.Upside-0.8%
A.R:R-1.4:1
Setup A.R:R (at entry)3.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Target reached (-7.1% upside)
! Earnings in 3 days - binary event risk
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-05-05 (3d)

Verdict History

reverse chrono — latest first
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Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is AEP stock a buy right now?

Hold if already holding. Not a fresh buy at $136.88, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (0.6% away). Chart setup: Golden cross, above all MAs, RSI 59, MACD bullish. Downgraded from BUY WAIT — price $136.94 has reached target $135.72. No upside to wait for. Target $135.72 (-0.8%), stop $114.36 (−19.7%), A.R:R -1.4:1. Score 5.3/10, moderate confidence.

What is the AEP stock price target?

Take-profit target: $135.72 (+14.1% upside). Target $135.72 (-0.8%), stop $114.36 (−19.7%), A.R:R -1.4:1. Stop-loss: $114.36.

What are the risks of investing in AEP?

Analyst target reached - limited upside remaining; Near 52-week high (0.6% away); Leverage penalty (D/E 1.5): -1.0.

Is AEP overvalued or undervalued?

American Electric Power Company trades at a P/E of 20.6 (forward 19.9). TrendMatrix value score: 5.2/10. Verdict: Hold.

What do analysts say about AEP?

28 analysts cover AEP with a consensus score of 3.8/5. Average price target: $141.

What does American Electric Power Company do?American Electric Power is a public utility holding company providing electric generation, transmission, and...

American Electric Power is a public utility holding company providing electric generation, transmission, and distribution across portions of 11 states through regulated subsidiaries. Revenue comes from regulated electric tariffs covering ~6.7M retail customers across vertically integrated utilities in OH, VA, WV, OK, AR, LA, TX, IN, KY, TN, MI. The 2025 generation mix was 43% coal, 22% natural gas, 19% nuclear, and 16% renewables.

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