(AEP) American Electric Power - Ratings and Ratios

American Electric Power Company, Inc. (NASDAQ:AEP) is a prominent electric public utility holding company primarily engaged in the generation, transmission, and distribution of electricity to retail and wholesale customers across the United States. The company operates through four key segments: Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing. AEP generates electricity using a diverse mix of energy sources, including coal, natural gas, renewables, nuclear, hydro, solar, wind, and other sources. It owns and operates an extensive network of transmission and distribution infrastructure, totaling approximately 225,000 circuit miles of distribution lines and 40,000 circuit miles of transmission lines. The company serves over 5.6 million retail customers and has a regulated generating capacity of 23,000 MW. AEP also participates in wholesale energy trading and marketing activities.

Founded in 1906 and headquartered in Columbus, Ohio, AEP has established itself as one of the largest investor-owned electric utilities in the U.S., with a strong focus on grid resilience, renewable energy integration, and customer-centric solutions. The company is increasingly transitioning toward cleaner energy sources, aligning with broader industry trends and regulatory requirements. AEPs infrastructure spans multiple states, making it a critical player in ensuring reliable power delivery across its service territories. The companys commitment to modernizing its grid and expanding renewable energy projects underscores its strategic direction in a rapidly evolving energy landscape.

3-Month Forecast: Based on the provided and , AEP is expected to experience moderate price movement in the near term. The stock is currently trading above its SMA 20 and SMA 50, indicating short-term bullish momentum. However, the SMA 200 suggests that the stock is in a longer-term uptrend. The ATR of 2.56 indicates moderate volatility, with potential price fluctuations within a range of approximately 5-7% over the next quarter. From a fundamental perspective, AEPs P/E ratio of 18.72, compared to its forward P/E of 17.70, suggests that the market expects earnings growth to moderate slightly in the coming year. The P/B ratio of 2.07 indicates that the stock is fairly valued relative to its book value. The companys RoE of 11.01% reflects strong profitability, which is expected to support its share price. Overall, AEP is likely to remain stable, with potential upside driven by its renewable energy initiatives and grid modernization efforts.