American Electric Power Co Inc (AEP): Today's Featured Utilities Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

American Electric Power ( AEP) pushed the Utilities sector higher today making it today's featured utilities winner. The sector as a whole closed the day up 1.1%. By the end of trading, American Electric Power rose 51 cents (1.2%) to $44.02 on average volume. Throughout the day, 2.3 million shares of American Electric Power exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in a price between $43.30-$44.02 after having opened the day at $43.37 as compared to the previous trading day's close of $43.51. Other companies within the Utilities sector that increased today were: Pure Cycle Corporation ( PCYO), up 11.7%, Centrais Eletricas Brasileiras ( EBR.B), up 11.5%, Centrais Eletricas Brasileiras ( EBR), up 10.1%, and American DG Energy ( ADGE), up 5.2%.
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American Electric Power Company, Inc., a public utility holding company, engages in the generation, transmission, and distribution of electric power to retail customers. It generates electricity using coal and lignite, natural gas, nuclear energy, and hydroelectric energy. American Electric Power has a market cap of $21.11 billion and is part of the utilities industry. The company has a P/E ratio of 14.5, below the S&P 500 P/E ratio of 17.7. Shares are up 1.9% year to date as of the close of trading on Friday. Currently there are seven analysts that rate American Electric Power a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates American Electric Power as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the utilities sector could consider Utilities Select Sector SPDR ( XLU) while those bearish on the utilities sector could consider ProShares UltraShort Utilities ( SDP).

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