American Electric Power (AEP) came out with quarterly earnings of $1.24 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $1.23 per share a year ago.
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Looking beyond Wall Street's top -and-bottom-line estimate forecasts for AEP (AEP), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended December 2024.
AEP's Q4 results are likely to be hurt by the warmer weather pattern. Yet, higher transmission revenues are likely to have bolstered the overall performance.
AEP (AEP) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The market reacted strongly to the unveiling of China's AI, DeepSeek, with AI stocks plummeting and REITs and utilities trading up significantly. Investors are shifting towards predictable returns from REITs and regulated utilities, which offer 8%-10% expected returns, amid uncertainties surrounding AI's future profitability. The DeepSeek news has made the steady cashflows of REITs and utilities more attractive as the allure of AI's unbridled growth diminishes.
American Electric Power offers a solid investment with a 3.8% dividend yield and a strong track record of shareholder returns and financial management. Management targets 6-8% annual EPS growth starting in 2026, driven by a $54 billion capital investment plan and operational efficiencies. AEP's new CEO is committed to optimizing the company structure, aiming for improved performance and strategic growth in regulated utilities and renewable energy.
AEP (AEP) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
The Zacks Earnings ESP is a great way to find potential earnings surprises. Why investors should take advantage now.
BofA Securities analyst Ross Fowler upgraded the shares of American Electric Power Company Inc AEP from Underperform to Buy and raised the price target from $98 to $104.
Long-term rates have risen, creating potential buying opportunities for utilities like AEP, AWK, AWR, BKH, ES, EVRG, SJW, WEC, WTRG, and XEL. These utilities have strong fundamentals, attractive valuations, and investment-grade balance sheets, offering potential total returns of 20% to 56% by 2025. Despite rate sensitivity, these utilities are well-positioned for long-term growth with secure dividends and robust balance sheets.
AEP continues to benefit from its systematic investment plan and renewable portfolio expansion initiatives.