Core Insights - American Electric Power (AEP) was recognized as one of the nation's Top Utilities in Economic Development by Site Selection magazine, marking its 12th appearance on the list in the last 13 years [1] - In 2023, AEP's economic development initiatives led to over $35 billion in capital investment and the creation of more than 10,400 new direct jobs within its service territory [1] Economic Development Highlights - AEP supported 92 new economic development projects in 2023, showcasing significant collaboration with various stakeholders [1] - Nucor is investing $2.7 billion to establish a sheet steel manufacturing facility in West Virginia, projected to create over 800 jobs [1] - SLB plans to invest $18.5 million to convert a former General Motors plant in Louisiana into a technology center, expected to generate nearly 600 new jobs [1] - TekniPlex is building a $45 million facility in Ohio for egg carton production, which will create 100 jobs [1] - AEP's e-learning course "Energizing Economic Development" benefited over 250 community leaders, enhancing their skills in driving economic growth [1] Company Overview - AEP operates the largest electric transmission system in the U.S., with over 40,000 miles of transmission lines and 225,000 miles of distribution lines, serving 5.6 million customers across 11 states [2] - The company has a generating capacity of nearly 29,000 megawatts, including approximately 6,000 megawatts from renewable sources [2] - AEP is investing $43 billion over the next five years to enhance the electric grid's reliability and sustainability, aiming for an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and achieving net zero by 2045 [2]

James O'Neil Overview Utilities are stable businesses that investors seek for dividend income. Some utilities like Vistra (VST) have raised their stock price hugely (Figure 1). I wonder if American Electric Power Company, Inc. (NASDAQ:AEP) can capture that growth and enjoy its high dividend yield (3.53%) Figure 1: Seeking Alpha I recommend holding on to AEP because, as a regulated utility, it won’t capture the full potential of data centers' growing electricity needs. Even the new CEO is a tailwind fo ...

Core Viewpoint - American Electric Power (AEP) reported a positive earnings performance for Q2 2024, with adjusted EPS beating estimates and revenues showing year-over-year growth, although some segments experienced declines in earnings [1][2][3]. Financial Performance - Adjusted EPS for Q2 2024 was $1.25, exceeding the Zacks Consensus Estimate of $1.23 by 1.6% and improving 10.6% from $1.13 in the same quarter last year [1]. - Operating revenues reached $4.73 billion, a 5.6% increase from $4.48 billion in the previous year, while GAAP revenues were reported at $4.58 billion, up 4.7% year-over-year [2]. Segmental Performance - Vertically Integrated Utility Operations saw adjusted earnings decline to $244.8 million from $260.4 million year-over-year [3]. - Transmission & Distribution Utilities reported adjusted earnings of $215.3 million, an increase from $156.5 million in the prior year [3]. - AEP Transmission Holdco generated adjusted earnings of $208.9 million, up from $196.5 million [3]. - Generation and Marketing adjusted earnings fell to $61 million from $66.1 million [3]. - The "All Other" segment reported a loss of $68 million, an improvement from a loss of $97.3 million in the previous year [3]. Operational Highlights - Electricity sales volume from Vertically Integrated Utilities increased by 2% year-over-year, while Transmission & Distribution Utilities improved by 12% [4]. - Total expenses for Q2 2024 were $3.62 billion, a 2.6% increase from the previous year, with interest expenses amounting to $465.6 million, up 1.2% [4]. Guidance and Estimates - AEP reiterated its 2024 operating earnings guidance, expecting earnings in the range of $5.53-$5.73 per share, with the Zacks Consensus Estimate at $5.59 per share [5]. - Estimates for AEP have trended upward over the past month, indicating a positive outlook [6][7]. Industry Comparison - AEP is part of the Zacks Utility - Electric Power industry, where CMS Energy reported revenues of $1.61 billion for the last quarter, reflecting a year-over-year increase of 3.3% [8]. - CMS Energy's EPS for the same period was $0.66, down from $0.75 a year ago, with expected earnings of $0.78 per share for the current quarter, indicating a 27.9% year-over-year change [8].

American Electric Power Company, Inc. (AEP) is deploying systematic investments in infrastructural upgrades to enhance the reliability of its operations and serve its utility customers efficiently. The company is also making consistent investments to boost its renewable generation portfolio.However, this Zacks Rank #3 (Hold) company faces risks like rising interest rates and an unfavorable financial position, which act as a headwind.AEP’s Tailwinds American Electric has a capital investment plan of $43 bill ...

Operating company presidents and chief nuclear officer will report directly to AEP President and CEO Bill FehrmanPeggy Simmons appointed executive vice president of Regulatory and Chief Administrative Officer to lead safety, regulatory, procurement and sustainability functions in addition to customer operations and economic development effortsCOLUMBUS, Ohio, Aug. 28, 2024 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) today announced organizational changes to advance the company's focus on improving ...

For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Has American Electric Power (AEP) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question.American Electric Power is one of 105 companies in the Utilities group. The Utilities group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank con ...

Core Insights - EverCharge has announced a strategic collaboration with Public Service Company of Oklahoma (PSO) to enhance electric vehicle (EV) charging solutions for customers in Oklahoma [1][3] - PSO aims to provide reliable EV charging options to over 575,000 customers, facilitating informed decisions for electrification projects [1][5] - EverCharge's SmartPower technology allows for the installation of up to 10 times more charging stations on existing electrical infrastructure, reducing the need for costly upgrades [2][4] Company Overview - EverCharge specializes in turnkey hardware and software EV charging solutions, focusing on efficient scaling of EV charging at the lowest cost [4] - The company was founded in 2013 and acquired by SK Group in 2022, which operates in various industries including semiconductor and energy [4] - PSO, a unit of American Electric Power (AEP), serves over 575,000 customer accounts and operates a diverse generating capacity of approximately 4,500 megawatts, primarily from wind and natural gas [5][6] Industry Impact - The collaboration between EverCharge and PSO is expected to significantly drive EV adoption across the United States [3] - AEP, the parent company of PSO, is investing $43 billion over the next five years to enhance the electric grid's reliability and sustainability [6]

A view of an electric power line. energyy As a dividend growth investor, I like to invest in companies with proven business models, growth tailwinds, and investment-grade balance sheets. This is because an established business model conveys a sense of reliability and predictability. That usually translates into a consistent dividend, which is important to me. Growth catalysts are also critical to me because I need my income to at least keep up with inflation for me to achieve and sustain financial indepen ...

Economic Overview - The Federal Reserve has been slow to ease monetary policy, maintaining high benchmark interest rates to combat inflation, but recent labor market weakness has raised recession fears [1] - Nonfarm payrolls increased by 114,000 in July, significantly below the expected 175,000, while the unemployment rate rose to 4.3%, a nearly three-year high, strengthening the case for interest rate cuts [1] Federal Reserve Actions - Fed Chair Jerome Powell indicated that the central bank is likely to lower borrowing costs as inflationary pressures are easing, with the personal consumption expenditure index rising 2.5% year-over-year in June, down from 2.6% in May and 2.7% in April [2] - Market participants are anticipating potential interest rate cuts before the scheduled September meeting, with 53.5% expecting a 25 basis point cut [2] Company Insights - American Electric Power Company, Inc. (AEP) is expected to benefit from the Fed's interest rate cuts, with a projected earnings growth of 6.5% for the current year and a 0.4% increase in earnings estimates over the past 60 days [4] - Micron Technology, Inc. (MU) stands to gain from lower borrowing costs, with a significant expected earnings growth of 126.1% for the current year and a 26.1% increase in earnings estimates over the past 60 days [5] - Barrick Gold Corporation (GOLD) is likely to see improved profit margins due to anticipated increases in gold prices in a low interest rate environment, with a 9.4% increase in earnings estimates and expected earnings growth of 38.1% [6][7] - PulteGroup, Inc. (PHM) is positioned to benefit from falling mortgage rates, which are expected to boost housing demand, with nearly 14% expected earnings growth and a 4% increase in earnings estimates over the past 60 days [8] Stock Performance - Over the past year, shares of American Electric Power, Micron, Barrick Gold, and PulteGroup have gained 21.9%, 36.3%, 4.4%, and 46.4%, respectively [3]

Markets continued to fall today as Friday’s jobs report showed the US labor force continued to cool while the unemployment rate rose to 4.3%, its highest peak since 2021.Also extending this week’s selloff was underwhelming Q3 guidance from several big tech firms. However, the utility sector may be one to consider amid heightened market volatility and the potential resurgence of broader economic fears.That said, here are three top utility stocks that have essential services and generous dividends to support ...