XEL vs. AEP: Which Stock Should Value Investors Buy Now?

Core Viewpoint - Xcel Energy (XEL) and American Electric Power (AEP) are both strong candidates for value investors, with both companies currently holding a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook [1] Valuation Metrics - XEL has a forward P/E ratio of 18.02, while AEP has a forward P/E of 18.09, indicating that both companies are similarly valued in terms of earnings [2] - The PEG ratio for XEL is 2.82, compared to AEP's PEG ratio of 2.90, suggesting that XEL may offer better value when considering expected earnings growth [2] - XEL's P/B ratio stands at 1.99, while AEP's P/B ratio is 2.06, further indicating that XEL is relatively more attractive based on book value [2] Value Grades - XEL has a Value grade of B, while AEP has a Value grade of C, suggesting that XEL is currently the superior value option based on the analyzed metrics [3]