American Electric Power Stock Performance

AEP Stock  USD 122.04  1.20  0.99%   
American Electric has a performance score of 9 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.0964, which signifies not very significant fluctuations relative to the market. 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 1.18%. 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

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Compared to the overall equity markets, risk-adjusted returns on investments in American Electric Power are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting technical and fundamental indicators, American Electric may actually be approaching a critical reversion point that can send shares even higher in December 2025. ...more
 
American Electric dividend paid on 10th of September 2025
09/10/2025
Begin Period Cash Flow379 M
Total Cashflows From Investing Activities-7.6 B

American Electric Relative Risk vs. Return Landscape

If you would invest  11,175  in American Electric Power on August 26, 2025 and sell it today you would earn a total of  1,029  from holding American Electric Power or generate 9.21% return on investment over 90 days. American Electric Power is generating 0.1444% of daily returns assuming volatility of 1.1775% on return distribution over 90 days investment horizon. In other words, 10% of stocks are less volatile than American, and above 98% of all equities are expected to generate higher returns over the next 90 days.
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Considering the 90-day investment horizon American Electric is expected to generate 1.78 times more return on investment than the market. However, the company is 1.78 times more volatile than its market benchmark. It trades about 0.12 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating roughly 0.06 per unit of risk.

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 = 0.1227

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Estimated Market Risk

 1.18
  actual daily
10
90% of assets are more volatile

Expected Return

 0.14
  actual daily
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98% of assets have higher returns

Risk-Adjusted Return

 0.12
  actual daily
9
91% of assets perform better
Based on monthly moving average American Electric is performing at about 9% 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

Assessing American Electric's fundamental ratios provides investors with valuable insights into American Electric's financial health and overall profitability. This information is crucial for making informed investment decisions. A high ROA would indicate that the American Electric is effectively leveraging its assets and equity to generate significant profits, making it an appealing investment. Conversely, low Return on Assets could signal underlying management issues in assets and equity, indicating a necessity for operational refinements. Please also refer to our technical analysis and fundamental analysis pages.
American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. American Electric Power Company, Inc. was incorporated in 1906 and is headquartered in Columbus, Ohio. American Electric operates under UtilitiesRegulated Electric classification in the United States and is traded on NASDAQ Exchange. It employs 16688 people.

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.
American Electric Power has 45.76 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.
Over 86.0% of American Electric shares are held by institutions such as insurance companies
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.

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.