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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

American Electric Power ( AEP) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day down 1.0%. By the end of trading, American Electric Power fell $0.63 (-1.4%) to $42.68 on light volume. Throughout the day, 2,617,155 shares of American Electric Power exchanged hands as compared to its average daily volume of 3,564,900 shares. The stock ranged in price between $42.65-$43.47 after having opened the day at $43.16 as compared to the previous trading day's close of $43.31. Other companies within the Utilities sector that declined today were: Huaneng Power International ( HNP), down 9.7%, Centrais Eletricas Brasileiras ( EBR.B), down 4.5%, Enersis ( ENI), down 4.5% and Companhia De Saneamento Basico Do Estado De ( SBS), down 4.3%.

American Electric Power Company, Inc., a public utility holding company, engages in the generation, transmission, and distribution of electric power to retail customers. The company generates electricity using coal and lignite, natural gas, nuclear energy, and hydroelectric energy. American Electric Power has a market cap of $21.3 billion and is part of the utilities industry. Shares are up 1.5% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate American Electric Power a buy, no analysts rate it a sell, and 9 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 revenue growth and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, American Midstream Partners ( AMID), up 4.5%, American DG Energy ( ADGE), up 2.4%, Consolidated Water Company ( CWCO), up 2.0% and Ocean Power Technologies ( OPTT), up 1.8%.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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