5 Best Regulated Electric Stocks to Buy According to Hedge Funds

3. American Electric Power Company Inc. (NASDAQ:AEP)

American Electric Power Company Inc. (NASDAQ:AEP) is one of the 10 best regulated electric stocks to buy according to hedge funds.

On March 12, J.P. Morgan increased the firm’s price target on American Electric Power Company Inc. (NASDAQ:AEP) to $139 from $125. The firm also maintained its Neutral rating on the stock. This upward revision follows the firm’s broader update to its valuation models across the North American utilities sector.

Earlier on February 27, UBS upgraded American Electric Power Company Inc. (NASDAQ:AEP) from a Sell to Neutral rating. The firm also increased its price target on the shares from $115 to $132.

UBS said the company appears well-positioned for stronger earnings expansion, now expecting annual growth of about 8%–9% through 2030 compared with last year’s midpoint outlook of around 7%. The firm also pointed out that American Electric Power Company Inc. (NASDAQ:AEP) holds the largest backlog of major electricity load contracts at roughly 56GW and operates the industry’s largest transmission network. According to the firm, these factors provide solid support for the company’s longer-term growth trajectory.

American Electric Power Company Inc. (NASDAQ:AEP) stands as a foundational pillar of the American energy landscape, operating as a massive, vertically integrated utility holding company. Their business centers on managing the complete lifecycle of electricity—from generation to the final delivery to retail and wholesale customers across the country.