American Electric Power Company, Inc. (NASDAQ:AEP) is among the 8 Most Profitable Utility Stocks to Buy Right Now.
As reported by TheFly, Siebert Williams started covering American Electric Power Company, Inc. (NASDAQ:AEP) on December 18, 2025, with a $137 price target and a buy rating. As per analyst Christopher Ellinghaus, a compound annual EPS growth rate of 8.8% through 2030 is anticipated, with a retail power load increase of almost 9% and rate base growth of nearly 10% driving earnings growth over the next five years.
UBS kept its Sell rating on American Electric Power Company, Inc. (NASDAQ:AEP) shares while reducing its price objective from $114 to $107.
Morgan Stanley also reduced its price objective on American Electric Power Company, Inc. (NASDAQ:AEP) to $120 from $128 and maintained its Overweight rating. In its year-ahead statement, the firm stated that data centers and growth upside will be major drivers of utility performance in 2026.
American Electric Power Company, Inc. (NASDAQ:AEP) operates several utilities, providing investors with insurance against a single adverse regulatory verdict. Regulated investments form the largest portion of the company’s capital investment strategy. Morningstar analysts believe that management’s 7% to 9% earnings growth plan from 2026 to 2030 is attainable at the upper end, and this investment supports that goal.
The stock is up by 25.42% YTD as of December 31, 2025.
While we acknowledge the potential of AEP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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