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 0.8%. By the end of trading, American Electric Power fell $0.56 (-1.2%) to $46.16 on average volume. Throughout the day, 3,482,826 shares of American Electric Power exchanged hands as compared to its average daily volume of 3,660,300 shares. The stock ranged in price between $46.06-$46.95 after having opened the day at $46.89 as compared to the previous trading day's close of $46.72. Other companies within the Utilities sector that declined today were: Empresa Distribuidora y Comercializadora No ( EDN), down 6.1%, Energy Company of Parana ( ELP), down 4.4%, Pure Cycle Corporation ( PCYO), down 3.8% and Ocean Power Technologies ( OPTT), down 3.1%.

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 $23.0 billion and is part of the utilities industry. The company has a P/E ratio of 19.8, above the S&P 500 P/E ratio of 17.7. Shares are up 10.4% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate American Electric Power a buy, no analysts rate it a sell, and 6 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, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Fuelcell Energy ( FCEL), up 5.9%, Atlas Energy ( ATLS), up 3.4% and Consolidated Water Company ( CWCO), up 1.7% , were all gainers within the utilities sector with ITC Holdings ( ITC) being today's featured utilities sector leader.

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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