American Electric (Germany) Buy Hold or Sell Recommendation

AEP Stock  EUR 94.50  3.00  3.28%   
Assuming the 90 days horizon and complete risk avoidance on your part, our recommendation regarding American Electric Power is 'Strong Sell'. Macroaxis provides American Electric buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding AEP positions.
  
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 board of governors.

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

Execute Advice
Sell American ElectricBuy American Electric
Strong Sell

Market Performance

ModestDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon American Electric Power has a Mean Deviation of 1.29, Semi Deviation of 1.57, Standard Deviation of 1.75, Variance of 3.06, Downside Variance of 3.48 and Semi Variance of 2.46
Macroaxis provides advice on American Electric Power to complement and cross-verify current analyst consensus on American Electric Power. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure American Electric is not overpriced, please confirm all American Electric Power fundamentals, including its current valuation, shares owned by insiders, and the relationship between the operating margin and shares outstanding .

American Electric Trading Alerts and Improvement Suggestions

American Electric has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
American Electric Power has accumulated 33.63 B in total debt with debt to equity ratio (D/E) of 149.0, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. American Electric Power has a current ratio of 0.48, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist American Electric until it has trouble settling it off, either with new capital or with free cash flow. So, American Electric's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like American Electric Power sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for American to invest in growth at high rates of return. When we think about American Electric's use of debt, we should always consider it together with cash and equity.
Over 78.0% of American Electric shares are held by institutions such as insurance companies

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
0.12
Value At Risk
-2.25
Potential Upside
2.76
Standard Deviation
1.75
   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 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 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 Jones0.75
σ
Overall volatility
1.72
Ir
Information ratio -0.0052

American Electric Volatility Alert

American Electric Power has relatively low volatility with skewness of -0.15 and kurtosis of 2.71. 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
FundamentalsAmerican ElectricPeer Average
Return On Equity0.0985-0.31
Return On Asset0.0274-0.14
Profit Margin0.12 %(1.27) %
Operating Margin0.20 %(5.51) %
Current Valuation83.75 B16.62 B
Shares Outstanding513.87 M571.82 M
Shares Owned By Insiders0.03 %10.09 %
Shares Owned By Institutions77.97 %39.21 %
Price To Earning20.11 X28.72 X
Price To Book2.07 X9.51 X
Price To Sales2.47 X11.42 X
Revenue19.64 B9.43 B
Gross Profit8.41 B27.38 B
EBITDA7.1 B3.9 B
Net Income2.31 B570.98 M
Cash And Equivalents386.2 M2.7 B
Cash Per Share0.78 X5.01 X
Total Debt33.63 B5.32 B
Debt To Equity149.00 %48.70 %
Current Ratio0.49 X2.16 X
Book Value Per Share46.50 X1.93 K
Cash Flow From Operations5.29 B971.22 M
Earnings Per Share4.26 X3.12 X
Price To Earnings To Growth3.02 X4.89 X
Target Price97.74
Number Of Employees16.97 K18.84 K
Beta0.44-0.15
Market Capitalization42.58 B19.03 B
Total Asset93.47 B29.47 B
Z Score0.68.72
Annual Yield0.04 %
Five Year Return3.00 %
Net Asset93.47 B

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.

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Insurance
Insurance Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Insurance theme has 61 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 Insurance Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in American Stock

When determining whether American Electric Power is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if American Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about American Electric Power Stock. Highlighted below are key reports to facilitate an investment decision about American Electric Power Stock:
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.
You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
Please note, there is a significant difference between American Electric's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Electric is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Electric's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.