American Electric Power Stock Buy Hold or Sell Recommendation
| AEP Stock | USD 98.08 1.28 1.32% |
Considering the 90-day investment horizon and your typical level of risk aversion, our recommendation regarding American Electric Power is 'Cautious Hold'. A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell American Electric Power given historical horizon and risk tolerance towards American Electric. When Macroaxis issues a 'buy' or 'sell' recommendation for American Electric Power, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out American Electric Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as American and provide practical buy, sell, or hold advice based on investors' constraints. American Electric Power. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.
American |
Execute American Electric Buy or Sell Advice
The American recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on American Electric Power. Macroaxis does not own or have any residual interests in American Electric Power or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute American Electric's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Cautious Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Almost neglects market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
American Electric Trading Alerts and Improvement Suggestions
| American Electric Power has 43.61 B in debt with debt to equity (D/E) ratio of 1.57, which is OK given its current industry classification. American Electric Power has a current ratio of 0.77, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for American to invest in growth at high rates of return. | |
| American Electric has a strong financial position based on the latest SEC filings | |
| Over 81.0% of American Electric shares are held by institutions such as insurance companies | |
| Latest headline from investing.com: Bloom Energys chief legal officer sells shares worth 31,657 |
American Electric Returns Distribution Density
The distribution of American Electric's historical returns is an attempt to chart the uncertainty of American Electric's future price movements. The chart of the probability distribution of American Electric daily returns describes the distribution of returns around its average expected value. We use American Electric Power price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of American Electric returns is essential to provide solid investment advice for American Electric.
| Mean Return | 0.01 | Value At Risk | -1.73 | Potential Upside | 1.58 | Standard Deviation | 1.12 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of American Electric historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
American Stock Institutional Investors
The American Electric's institutional investors refer to entities that pool money to purchase American Electric's securities or originate loans. These institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds.
| Shares | Royal Bank Of Canada | 2024-06-30 | 6.9 M | Bank Of America Corp | 2024-06-30 | 6 M | Franklin Resources Inc | 2024-06-30 | 5.2 M | Ameriprise Financial Inc | 2024-06-30 | 5.2 M | Massachusetts Financial Services Company | 2024-09-30 | 5.1 M | Legal & General Group Plc | 2024-06-30 | 5.1 M | Wells Fargo & Co | 2024-06-30 | 4.7 M | Nuveen Asset Management, Llc | 2024-06-30 | 4.7 M | Northern Trust Corp | 2024-09-30 | 4.6 M | Vanguard Group Inc | 2024-09-30 | 50.9 M | Blackrock Inc | 2024-06-30 | 45.4 M |
American Electric Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (248.2M) | (142.9M) | 300.2M | (313.9M) | (504M) | (478.8M) | |
| Change In Cash | (11.5M) | 5.7M | 13.1M | 105.1M | (177.5M) | (168.6M) | |
| Free Cash Flow | (1.9B) | (2.5B) | (1.9B) | (1.5B) | (2.5B) | (2.4B) | |
| Other Non Cash Items | (495.5M) | (941M) | (452.6M) | 112.8M | 172.1M | 280.9M | |
| Dividends Paid | 1.4B | 1.4B | 1.5B | 1.6B | 1.8B | 966.4M | |
| Capital Expenditures | 6.1B | 6.3B | 5.8B | 6.8B | 7.5B | 7.9B | |
| Net Income | 1.9B | 2.2B | 2.5B | 2.3B | 2.2B | 1.3B | |
| End Period Cash Flow | 432.6M | 438.3M | 451.4M | 556.5M | 379M | 393.8M | |
| Change To Netincome | (83.6M) | (4.3M) | 97.9M | (206.6M) | (237.6M) | (225.7M) | |
| Depreciation | 2.7B | 2.9B | 3.0B | 3.3B | 3.2B | 2.5B | |
| Investments | (81.8M) | (34.5M) | (53.7M) | (7.8B) | (6.6B) | (6.2B) | |
| Change Receivables | 247.8M | (129.3M) | (119.7M) | (681.7M) | (784.0M) | (744.8M) | |
| Net Borrowings | 4.2B | 3.9B | 3.6B | 3.8B | 4.4B | 4.6B |
American Electric Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to American Electric or Electric Utilities sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that American Electric's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a American stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.02 | |
β | Beta against Dow Jones | -0.29 | |
σ | Overall volatility | 1.15 | |
Ir | Information ratio | -0.08 |
American Electric Volatility Alert
American Electric Power has relatively low volatility with skewness of -0.7 and kurtosis of 1.98. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure American Electric's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact American Electric's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.American Electric Fundamentals Vs Peers
Comparing American Electric's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze American Electric's direct or indirect competition across all of the common fundamentals between American Electric and the related equities. This way, we can detect undervalued stocks with similar characteristics as American Electric or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of American Electric's fundamental indicators could also be used in its relative valuation, which is a method of valuing American Electric by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare American Electric to competition |
| Fundamentals | American Electric | Peer Average |
| Return On Equity | 0.1 | -0.31 |
| Return On Asset | 0.0261 | -0.14 |
| Profit Margin | 0.13 % | (1.27) % |
| Operating Margin | 0.26 % | (5.51) % |
| Current Valuation | 95.25 B | 16.62 B |
| Shares Outstanding | 532.56 M | 571.82 M |
| Shares Owned By Insiders | 0.03 % | 10.09 % |
| Shares Owned By Institutions | 80.70 % | 39.21 % |
| Number Of Shares Shorted | 7.45 M | 4.71 M |
| Price To Earning | 20.02 X | 28.72 X |
| Price To Book | 1.93 X | 9.51 X |
| Price To Sales | 2.63 X | 11.42 X |
| Revenue | 18.98 B | 9.43 B |
| Gross Profit | 8.41 B | 27.38 B |
| EBITDA | 7.21 B | 3.9 B |
| Net Income | 2.21 B | 570.98 M |
| Cash And Equivalents | 724.4 M | 2.7 B |
| Cash Per Share | 1.41 X | 5.01 X |
| Total Debt | 43.61 B | 5.32 B |
| Debt To Equity | 1.56 % | 48.70 % |
| Current Ratio | 0.79 X | 2.16 X |
| Book Value Per Share | 49.99 X | 1.93 K |
| Cash Flow From Operations | 5.01 B | 971.22 M |
| Short Ratio | 2.95 X | 4.00 X |
| Earnings Per Share | 4.96 X | 3.12 X |
| Price To Earnings To Growth | 1.91 X | 4.89 X |
| Target Price | 101.09 | |
| Number Of Employees | 17.25 K | 18.84 K |
| Beta | 0.54 | -0.15 |
| Market Capitalization | 51.55 B | 19.03 B |
| Total Asset | 96.68 B | 29.47 B |
| Retained Earnings | 12.8 B | 9.33 B |
| Working Capital | (5.5 B) | 1.48 B |
Note: Disposition of tradable shares by Quinton Lies of American Electric subject to Rule 16b-3 [view details]
American Electric Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as American . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About American Electric Buy or Sell Advice
When is the right time to buy or sell American Electric Power? Buying financial instruments such as American Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having American Electric in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Online Gaming Thematic Idea Now
Online Gaming
Companies that are involved in the building and marketing of online gaming-related products. The Online Gaming theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Online Gaming Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for American Stock Analysis
When running American Electric's price analysis, check to measure American Electric's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Electric is operating at the current time. Most of American Electric's value examination focuses on studying past and present price action to predict the probability of American Electric's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Electric's price. Additionally, you may evaluate how the addition of American Electric to your portfolios can decrease your overall portfolio volatility.