Trade-Ideas LLC identified

American Electric Power

(

AEP

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified American Electric Power as such a stock due to the following factors:

  • AEP has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 1.26 mentions/day.
  • AEP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $216.4 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on AEP:

American Electric Power Company, Inc., a public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers. The stock currently has a dividend yield of 3.9%. AEP has a PE ratio of 16. Currently there are 9 analysts that rate American Electric Power a buy, no analysts rate it a sell, and 6 rate it a hold.

TST Recommends

The average volume for American Electric Power has been 3.2 million shares per day over the past 30 days. American Electric has a market cap of $28.6 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.36 and a short float of 1.1% with 1.84 days to cover. Shares are down 0.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates American Electric Power as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, good cash flow from operations, increase in net income and attractive valuation levels. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • AEP's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 6.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • AMERICAN ELECTRIC POWER CO has improved earnings per share by 5.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AMERICAN ELECTRIC POWER CO increased its bottom line by earning $3.31 versus $3.04 in the prior year. This year, the market expects an improvement in earnings ($3.72 versus $3.31).
  • Net operating cash flow has increased to $1,707.00 million or 11.71% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -0.07%.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Electric Utilities industry average. The net income increased by 5.3% when compared to the same quarter one year prior, going from $493.00 million to $519.00 million.

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