AEP Stock Analysis: Buy, Sell, or Hold?
AEP - American Electric Power Company, Inc.
$119.78
0.57 (0.47%)
▲
HOLD
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Feb 12, 2026
12d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: AEP is fairly valued with market pricing in 0.6% annual growth. Fine to hold or accumulate slowly on dips.
📊 HOLD: AEP is fairly valued with market pricing in 0.6% annual growth. Fine to hold or accumulate slowly on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$152.43
Based on 5.5% avg growth
INTRINSIC VALUE TODAY
$94.65
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 18.5x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: AEP is currently trading at $119.78, which is considered extended relative to its 30-day fair value range of $115.06 to $118.81. The stock's valuation (Forward PE: 18.9) is in line with its historical norms (18.5). At these levels, the market is pricing in 0.6% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, AEP is in a strong uptrend. The price is approaching resistance at $120.82. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: AEP has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, AEP is in a strong uptrend. The price is approaching resistance at $120.82. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: AEP has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
EXTENDED
Fair Price Range
$115.06 -
$118.81
Company Quality Score
63/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
58.1%
Protect Your Profits
Holding AEP? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($128.75)
- NEUTRAL: Market pricing in 0.6% annual earnings growth - fairly valued
Fair Price Analysis
30-Day Fair Range
$115.06 -
$118.81
Current vs Fair Value
EXTENDED
Support & Resistance Levels
Support Level
$115.56
Resistance Level
$120.82
Current Trend
Strong Uptrend
Fundamental Context
Forward P/E (Next Year Est.)
18.86
Wall Street Target
$128.75
(+8.0%)
Revenue Growth (YoY)
10.9%
Earnings Growth (YoY)
0.6%
Profit Margin
17.2%
Valuation Premium vs History
+0.6% premium
PE vs Historical
18.9 vs 18.5
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+0.6%
(market-implied from PE analysis)
1-Year Target
$119.93
(+1%)
2-Year Target
$120.64
(+1%)
3-Year Target
$121.37
(+2%)
3-Yr Target (if PE normalizes)
(PE: 19→19)
PE COMPRESSION
$119.05
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: 6.9%)
$172.06
(+44%)
Base:
(SPY PE: 18.9, Growth: 6.9%)
$145.52
(+22%)
Bear:
(PE: 16.0, Growth: 6.9%)
$123.69
(+4%)
📈
Valuation based on Current Earnings
Trailing PE: 17.49 | Current EPS (TTM): $6.83
Bull Case
$121.57
(+2%)
Analyst growth -7.5%, PE expands to 19.2
Base Case
$110.52
(-7%)
Market implied -7.5%, PE stable at 17.5
Bear Case
$81.21
(-32%)
Severe decline -20.0%, PE contracts to 14.9
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: January 30, 2026 5:51 PM ET
Data refreshes hourly during market hours. Next update: 6:51 PM
Data refreshes hourly during market hours. Next update: 6:51 PM
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Technical Signals Check
Is AEP showing a specific setup today?
Insider Activity (6 Months)
2
Buys
3
Sells
Net
INSIDERS SELLING
Recent Transactions
Benjamin G S Fowke III
SELL
5000 shares
2025-10-10
Rick Larsen
BUY
2025-10-06
Kelly J Ferneau
SELL
1006 shares
2025-10-02
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Advanced AEP Option Strategies
Professional options setups generated by AI based on today's AEP price and gamma walls.
