Here's Why American Electric Power (AEP) is a Strong Growth Stock

Core Viewpoint - Zacks Premium provides various tools and resources to help investors make informed decisions and enhance their confidence in stock market investments [1][2]. Summary by Category Zacks Style Scores - The Zacks Style Scores are indicators designed to assist investors in selecting stocks with the highest potential to outperform the market within a 30-day timeframe [3]. - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score [3]. Value Score - The Value Style Score identifies attractive and discounted stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [4]. Growth Score - The Growth Style Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [5]. Momentum Score - The Momentum Style Score helps investors capitalize on price trends by evaluating factors like one-week price changes and monthly earnings estimate changes [6]. VGM Score - The VGM Score combines the three Style Scores to identify stocks with the best value, growth potential, and momentum, serving as a strong indicator alongside the Zacks Rank [7]. Zacks Rank - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to guide investors in building successful portfolios [8]. - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9]. Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 that also possess Style Scores of A or B to maximize potential upside [10]. - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [11]. Company Spotlight: American Electric Power (AEP) - American Electric Power is a major public utility holding company serving approximately 5.6 million customers across 11 states, with a generating capacity of about 23,200 megawatts [12]. - The company has a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating a stable position in the market [12]. - AEP is projected to experience year-over-year earnings growth of 4.3% for the current fiscal year, with a recent upward revision in earnings estimates [13].