Jim Cramer’s Recession-Proof Stock Picks

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

No. of Hedge Funds: 53

American Electric Power Company, Inc. (NASDAQ:AEP) made its way into our list of Jim Cramer’s recession-proof stock picks. Amid lowered price targets and issuance of $2 billion in debentures, Jim Cramer is not backing down on the stock.

On August 29, 2025, the West Virginia Public Service Commission (PSC) approved the securitization of $2.4 billion in costs and removed $1.9 billion from the rate base. Following this interim order, Jefferies lowered the price target on American Electric Power Company, Inc. (NASDAQ:AEP) from $120 to $116. Later, on September 25, 2025, Morgan Stanley also lowered the price target on the stock from $117 to $115.

Amid these price target changes, the company, on September 23, 2025, announced the issuance of $1.1 billion in Series C Debentures and $900 million in Series D Debentures. Both debentures, with a combined value of $2 billion, are due in 2056, and with this move, the company secures long-term funding for its expansion.

In the Lightning Round on CNBC, on September 27, 2025, Jim Cramer backed the stock with the following response to one of the callers.

“I’m not backing down on American Electric”

53 hedge funds hold ownership stakes in American Electric Power Company, Inc. (NASDAQ:AEP), signaling strong institutional confidence and making the stock a wise choice for investors seeking recession-proof stocks backed with expert advice.

American Electric Power Company, Inc. (NASDAQ:AEP), founded in 1906, is one of the largest electric utilities in the U.S. The Ohio-based company generates, transmits, and distributes power to 5.6 million customers in 11 states.

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