Is American Electric Power Stock Outperforming the Dow?

Company Overview - American Electric Power Company, Inc. (AEP) is a major electric utility based in Columbus, Ohio, focusing on electricity generation from coal, natural gas, nuclear, and renewable sources [1] - AEP has a market capitalization of $62.78 billion, categorizing it as a "large-cap" stock [1] Operations and Infrastructure - AEP operates one of the largest transmission networks in the U.S. and has an extensive distribution system [2] - Subsidiaries like AEP Ohio and Appalachian Power ensure reliable power delivery to various customer segments, including residential, commercial, and industrial [2] Stock Performance - AEP's stock reached a 52-week high of $124.80 on November 18 but has since declined by 5.8% from that peak [3] - The stock has outperformed the broader Dow Jones Industrial Average, gaining 8.7% over the past three months compared to the index's 5.6% increase [3] - Over the past 52 weeks, AEP's stock has increased by 20.6%, while the Dow Jones index has risen by 7.1% [4] - In the last six months, AEP shares have grown by 15.5%, compared to the index's 13.3% gain [4] Financial Results - For Q3 2025, AEP reported a revenue increase of 10.9% year-over-year, reaching $6.01 billion, surpassing Wall Street's expectation of $5.65 billion [5] - The company's non-GAAP EPS decreased from $1.85 in Q3 2024 to $1.80 in Q3 2025, falling short of the expected $1.81 [5] Growth Outlook - AEP has raised its long-term operating earnings growth forecast to 7%-9% over the next five years, supported by a new $72 billion capital plan and 28 GW of new load backed by customer agreements [6] - Following the strong outlook, AEP's stock gained 6.1% intraday on October 29 [6] Competitive Position - AEP has significantly outperformed Dominion Energy, Inc. (D), which gained only 2.8% over the past 52 weeks and 4.5% over the past six months [7]