American Electric Power
American Electric Power (AEP) is a utility holding company with a market capitalization of $33 billion. American Electric Power operates in 11 states and serves more than 5.4 million customers. So far in 2018, AEP stock has fallen more than 8%—mirroring weakness in broader utilities (XLU) (IDU).
AEP has been paying dividends for more than 100 years—one of the longest dividend paying histories among the S&P 500 utilities. To learn more, read American Electric Power’s Dividend Growth Compared to Its Peers.
American Electric Power stock is trading at a PE (price-to-earnings) multiple beyond 18x—lower than its five-year historical average. American Electric Power stock is trading at an EV-to-EBITDA valuation of 10.8x, while its five-year historical average valuation is ~10x.
According to Wall Street analysts’ consensus, American Electric Power stock has a mean target price of $73.66—compared to its current market price of $66.27. The target price indicates a potential upside of more than 11% for the next 12 months.
Among the 17 analysts covering American Electric Power, six analysts recommend it as a “hold,” seven recommend it as a “buy,” and four recommend it as a “strong buy.” None of the analysts recommend American Electric Power as a “strong sell.”
For a comparison of the top utilities’ dividend profiles, read Analyzing the Biggest S&P 500 Utilities’ Dividend Profiles.