5 Best Electric Utility Stocks To Invest In

4. American Electric Power Company, Inc. (NASDAQ:AEP)

Number of Hedge Fund Holders: 30

American Electric Power Company, Inc. (NASDAQ:AEP) is an Ohio-based electric public utility holding company, specializing in the generation, transmission, and distribution of electricity for retail and wholesale customers in the United States. The company operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. American Electric Power Company, Inc. (NASDAQ:AEP) is one of the premier utility stocks to invest in, with a robust dividend profile. 

On October 10, Credit Suisse analyst Nicholas Campanella reiterated an Outperform rating on American Electric Power Company, Inc. (NASDAQ:AEP) but slashed the price target on the shares to $95 from $105. Key updates from the firm’s NYC Analyst Day include trimmed 2022 EPS guidance, 2023 EPS guidance of $5.19-$5.39 per share, updated 2023-2027 five-year capital plan to $40 billion, and updated forecasted closing for unregulated contracted renewable sale in Q2 2023, among other positive news. On October 24, Guggenheim analyst Shahriar Pourreza also maintained a Buy rating on the stock but lowered the price target to $93 from $109. 

According to Insider Monkey’s data, Jim Simons’ Renaissance Technologies held the leading position in American Electric Power Company, Inc. (NASDAQ:AEP), comprising more than 1 million shares worth $99 million. 

Here is what ClearBridge Investments Value Equity has to say about American Electric Power Company, Inc. (NASDAQ:AEP) in its Q1 2022 investor letter:

“About 5% of the portfolio is in transitioning power companies, typically migrating from coal to renewables. We have been active in encouraging these transitions and added a new position in American Electric Power (NASDAQ:AEP). AEP has the fastest planned renewable energy ramp in the U.S., with plans to both shrink coal and grow renewables by 50% each by 2030. This would drive an 80% emissions reduction, while supporting high single-digit earnings growth at a double-digit return.”