Is American Electric Stock a Good Investment?
American Electric Investment Advice | AEP |
- Examine American Electric's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research American Electric's leadership team and their track record. Good management can help American Electric navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Electric Utilities space and any emerging trends that could impact American Electric's business and its evolving consumer preferences.
- Compare American Electric's performance and market position to its competitors. Analyze how American Electric is positioned in terms of product offerings, innovation, and market share.
- Check if American Electric pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about American Electric's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in American Electric Power stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if American Electric Power is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | 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 |
Examine American Electric Stock
Researching American Electric's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 81.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.95. Some equities with similar Price to Book (P/B) outperform the market in the long run. American Electric Power has Price/Earnings To Growth (PEG) ratio of 1.57. The entity last dividend was issued on the 8th of November 2024. The firm had 2:1 split on the 31st of October 1962.
To determine if American Electric is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding American Electric's research are outlined below:
| American Electric generated a negative expected return over the last 90 days | |
| 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 finance.yahoo.com: IM and Stakeholders File Large Load Settlement to Advance Grid Reliability and Support Economic Growth |
American Electric uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in American Electric Power. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to American Electric's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 27th of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 27th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact American Electric's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises American Electric's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2006-02-01 | 2005-12-31 | 0.25 | 0.29 | 0.04 | 16 | ||
2003-07-30 | 2003-06-30 | 0.4 | 0.44 | 0.04 | 10 | ||
2004-07-30 | 2004-06-30 | 0.43 | 0.38 | -0.05 | 11 | ||
2009-01-29 | 2008-12-31 | 0.53 | 0.59 | 0.06 | 11 | ||
2007-07-31 | 2007-06-30 | 0.58 | 0.64 | 0.06 | 10 | ||
2009-07-31 | 2009-06-30 | 0.61 | 0.68 | 0.07 | 11 | ||
2000-04-25 | 2000-03-31 | 0.6 | 0.53 | -0.07 | 11 | ||
2021-02-25 | 2020-12-31 | 0.79 | 0.87 | 0.08 | 10 |
Know American Electric's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as American Electric is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading American Electric Power backward and forwards among themselves. American Electric's institutional investor refers to the entity that pools money to purchase American Electric's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Royal Bank Of Canada | 2024-06-30 | 6.9 M | Bank Of America Corp | 2024-06-30 | 6 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 | Alliancebernstein L.p. | 2024-06-30 | 4.4 M | Vanguard Group Inc | 2024-09-30 | 50.9 M | Blackrock Inc | 2024-06-30 | 45.4 M |
American Electric's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 51.97 B.Market Cap |
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American Electric's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.02 | |
| Return On Capital Employed | 0.04 | 0.07 | |
| Return On Assets | 0.02 | 0.02 | |
| Return On Equity | 0.09 | 0.07 |
Determining American Electric's profitability involves analyzing its financial statements and using various financial metrics to determine if American Electric is a good buy. For example, gross profit margin measures American Electric's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of American Electric's profitability and make more informed investment decisions.
Evaluate American Electric's management efficiency
American Electric Power has Return on Asset of 0.0261 % which means that on every $100 spent on assets, it made $0.0261 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1018 %, implying that it generated $0.1018 on every 100 dollars invested. American Electric's management efficiency ratios could be used to measure how well American Electric manages its routine affairs as well as how well it operates its assets and liabilities. As of 11/24/2024, Return On Capital Employed is likely to grow to 0.07, while Return On Tangible Assets are likely to drop 0.02. As of 11/24/2024, Change To Liabilities is likely to grow to about 932.4 M, while Total Current Liabilities is likely to drop slightly above 8.6 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 48.73 | 24.72 | |
| Tangible Book Value Per Share | 48.63 | 24.37 | |
| Enterprise Value Over EBITDA | 11.86 | 7.08 | |
| Price Book Value Ratio | 1.67 | 1.34 | |
| Enterprise Value Multiple | 11.86 | 7.08 | |
| Price Fair Value | 1.67 | 1.34 | |
| Enterprise Value | 85.4 B | 89.7 B |
American Electric Power benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Dividend Yield 0.0381 | Forward Dividend Yield 0.0381 | Forward Dividend Rate 3.72 | Beta 0.539 |
Basic technical analysis of American Stock
As of the 24th of November, American Electric shows the risk adjusted performance of 0.0101, and Mean Deviation of 0.8606. American Electric Power technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.American Electric's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific American Electric insiders, such as employees or executives, is commonly permitted as long as it does not rely on American Electric's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases American Electric insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
American Electric's Outstanding Corporate Bonds
American Electric issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. American Electric Power uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most American bonds can be classified according to their maturity, which is the date when American Electric Power has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand American Electric's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing American Electric's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0101 | |||
| Market Risk Adjusted Performance | 0.0091 | |||
| Mean Deviation | 0.8606 | |||
| Semi Deviation | 1.2 | |||
| Downside Deviation | 1.25 | |||
| Coefficient Of Variation | 11069.31 | |||
| Standard Deviation | 1.13 | |||
| Variance | 1.28 | |||
| Information Ratio | (0.11) | |||
| Jensen Alpha | 0.031 | |||
| Total Risk Alpha | (0.18) | |||
| Sortino Ratio | (0.1) | |||
| Treynor Ratio | (0.0009) | |||
| Maximum Drawdown | 6.17 | |||
| Value At Risk | (1.73) | |||
| Potential Upside | 1.58 | |||
| Downside Variance | 1.56 | |||
| Semi Variance | 1.45 | |||
| Expected Short fall | (0.87) | |||
| Skewness | (0.66) | |||
| Kurtosis | 1.8 |
| Risk Adjusted Performance | 0.0101 | |||
| Market Risk Adjusted Performance | 0.0091 | |||
| Mean Deviation | 0.8606 | |||
| Semi Deviation | 1.2 | |||
| Downside Deviation | 1.25 | |||
| Coefficient Of Variation | 11069.31 | |||
| Standard Deviation | 1.13 | |||
| Variance | 1.28 | |||
| Information Ratio | (0.11) | |||
| Jensen Alpha | 0.031 | |||
| Total Risk Alpha | (0.18) | |||
| Sortino Ratio | (0.1) | |||
| Treynor Ratio | (0.0009) | |||
| Maximum Drawdown | 6.17 | |||
| Value At Risk | (1.73) | |||
| Potential Upside | 1.58 | |||
| Downside Variance | 1.56 | |||
| Semi Variance | 1.45 | |||
| Expected Short fall | (0.87) | |||
| Skewness | (0.66) | |||
| Kurtosis | 1.8 |
Consider American Electric's intraday indicators
American Electric intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of American Electric stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
American Electric Corporate Filings
13A | 8th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 6th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 8th of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F3 | 6th of September 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
American Stock media impact
Far too much social signal, news, headlines, and media speculation about American Electric that are available to investors today. That information is available publicly through American media outlets and privately through word of mouth or via American internal channels. However, regardless of the origin, that massive amount of American data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of American Electric news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of American Electric relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to American Electric's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive American Electric alpha.
American Electric Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards American Electric can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
American Electric Power Historical Investor Sentiment
Investor biases related to American Electric's public news can be used to forecast risks associated with an investment in American. The trend in average sentiment can be used to explain how an investor holding American can time the market purely based on public headlines and social activities around American Electric Power. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
American Electric's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for American Electric and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average American Electric news discussions. The higher the estimate score, the more favorable the investor's outlook on American Electric.
American Electric Corporate Directors
| David Anderson | Independent Director | Profile | |
| Linda Goodspeed | Independent Director | Profile | |
| Sara Tucker | Independent Director | Profile | |
| Richard Notebaert | Independent Director | Profile |
Already Invested in American Electric Power?
The danger of trading American Electric Power is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of American Electric is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than American Electric. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile American Electric Power is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
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.