American Electric Power Stock Performance

AEP Stock  USD 86.10  1.30  1.53%   
American Electric has a performance score of 4 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.76, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, American Electric's returns are expected to increase less than the market. However, during the bear market, the loss of holding American Electric is expected to be smaller as well. American Electric Power right now shows a risk of 1.3%. Please confirm American Electric Power potential upside, rate of daily change, and the relationship between the sortino ratio and skewness , to decide if American Electric Power will be following its price patterns.

Risk-Adjusted Performance

4 of 100

 
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Compared to the overall equity markets, risk-adjusted returns on investments in American Electric Power are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, American Electric is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors. ...more

Actual Historical Performance (%)

One Day Return
1.53
Five Day Return
3.3
Year To Date Return
3.51
Ten Year Return
69.96
All Time Return
150.95
Forward Dividend Yield
0.0409
Payout Ratio
0.6527
Last Split Factor
2:1
Forward Dividend Rate
3.52
Dividend Date
2024-03-08
1
American Electric Power shares rise over 3 percent on upbeat guidance
02/26/2024
2
American Electric Power Company, Inc. Q4 2023 Earnings Call Transcript
02/28/2024
3
3,0 Shares in American Electric Power Company, Inc. Bought by Insigneo Advisory Services LLC
03/04/2024
4
EF-O tornado moves through Putnam County
03/06/2024
 
American Electric dividend paid on 8th of March 2024
03/08/2024
6
Moneta Group Investment Advisors LLC Raises Holdings in American Electric Power Company, Inc.
03/11/2024
7
AEP test will determine if Columbus startup builds a factory with hundreds of jobs
03/15/2024
8
American Electric Power Buy This Excellent Dividend Stock On Sale - Seeking Alpha
03/19/2024
9
Natixis Corporate Investment Banking leads 1.27Bn construction financing of four renewable energy projects for Invenergy
03/22/2024
10
AEP Down 1.9 percent Since Last Earnings Report Can It Rebound
03/27/2024
Begin Period Cash Flow556.5 M
  

American Electric Relative Risk vs. Return Landscape

If you would invest  8,223  in American Electric Power on December 30, 2023 and sell it today you would earn a total of  387.00  from holding American Electric Power or generate 4.71% return on investment over 90 days. American Electric Power is generating 0.0837% of daily returns assuming volatility of 1.3037% on return distribution over 90 days investment horizon. In other words, 11% of stocks are less volatile than American, and above 99% of all equities are expected to generate higher returns over the next 90 days.
  Expected Return   
       Risk  
Considering the 90-day investment horizon American Electric is expected to generate 1.66 times less return on investment than the market. In addition to that, the company is 2.28 times more volatile than its market benchmark. It trades about 0.06 of its total potential returns per unit of risk. The NYSE Composite is currently generating roughly 0.24 per unit of volatility.

American Electric Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for American Electric's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as American Electric Power, and traders can use it to determine the average amount a American Electric's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.0642

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Estimated Market Risk

 1.3
  actual daily
11
89% of assets are more volatile

Expected Return

 0.08
  actual daily
1
99% of assets have higher returns

Risk-Adjusted Return

 0.06
  actual daily
4
96% of assets perform better
Based on monthly moving average American Electric is performing at about 4% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of American Electric by adding it to a well-diversified portfolio.

American Electric Fundamentals Growth

American Stock prices reflect investors' perceptions of the future prospects and financial health of American Electric, and American Electric fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on American Stock performance.

About American Electric Performance

To evaluate American Electric Power Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when American Electric generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare American Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand American Electric Power market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents American's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2024
Return On Capital Employed 0.04  0.07 
Return On Assets 0.02  0.02 
Return On Equity 0.09  0.07 

Things to note about American Electric Power performance evaluation

Checking the ongoing alerts about American Electric for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for American Electric Power help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
The company 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. 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
On 8th of March 2024 American Electric paid $ 0.88 per share dividend to its current shareholders
Latest headline from finance.yahoo.com: AEP Down 1.9 percent Since Last Earnings Report Can It Rebound
Evaluating American Electric's performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate American Electric's stock performance include:
  • Analyzing American Electric's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
  • Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether American Electric's stock is overvalued or undervalued compared to its peers.
  • Examining American Electric's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
  • Evaluating American Electric's management team can have a significant impact on its success or failure. Reviewing the track record and experience of American Electric's management team can help you assess the Company's leadership.
  • Pay attention to analyst opinions and ratings of American Electric's stock. These opinions can provide insight into American Electric's potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating American Electric's stock performance is not an exact science, and many factors can impact American Electric's stock market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.
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 Trending Equities to better understand how to build diversified portfolios, which includes a position in American Electric Power. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income.
Note that the American Electric Power information on this page should be used as a complementary analysis to other American Electric's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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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.
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Is American Electric's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Electric. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Electric listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.15)
Dividend Share
3.37
Earnings Share
4.24
Revenue Per Share
36.582
Quarterly Revenue Growth
(0.06)
The market value of American Electric Power is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Electric's value that differs from its market value or its book value, called intrinsic value, which is American Electric's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Electric's market value can be influenced by many factors that don't directly affect American Electric's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
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.