FE vs. AEP: Which Stock Is the Better Value Option?

Core Insights - The article compares FirstEnergy (FE) and American Electric Power (AEP) to determine which stock is undervalued for investors interested in Utility - Electric Power stocks [1] Valuation Metrics - FirstEnergy has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to American Electric Power, which has a Zacks Rank of 3 (Hold) [3] - FirstEnergy's forward P/E ratio is 18.64, while American Electric Power's forward P/E is 20.65, suggesting that FE may be undervalued relative to AEP [5] - The PEG ratio for FirstEnergy is 2.89, compared to AEP's PEG ratio of 3.19, indicating that FE has a better valuation when considering expected earnings growth [5] - FirstEnergy's P/B ratio is 1.93, while American Electric Power's P/B ratio is 2.08, further supporting the notion that FE is more attractively valued [6] Overall Assessment - FirstEnergy is noted for its improving earnings outlook, which enhances its attractiveness as a value investment compared to American Electric Power [7] - Based on the discussed valuation metrics, FirstEnergy is considered the superior value option at this time [7]