American Electric Power Stock: Is Wall Street Bullish or Bearish?

American Electric Power Company, Inc. (AEP), headquartered in Columbus, Ohio, generates, transmits, and distributes electricity for sale to retail and wholesale customers. With a market cap of $68.8 billion, the company operates approximately 225,000 circuit miles of distribution lines that delivers electricity to 5.6 million customers. 

Shares of this domestic electric utility company have underperformed the broader market over the past year. AEP has gained 10.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 21.5%. In 2026, AEP stock is up 8.6%, compared to the SPX’s 12.6% rise on a YTD basis. 

Narrowing the focus, AEP’s outperformance is apparent compared to State Street Utilities Select Sector SPDR ETF (XLU). The exchange-traded fund has gained about 1.3% over the past year. Moreover, AEP’s returns on a YTD basis outshine the ETF’s 1.6% gains over the same time frame.

AEP has delivered mixed performance over the past year due to a tension between strong long-term growth drivers and near-term market friction. On the positive side, AEP has benefited from structural demand tailwinds driven by the massive expansion of AI data centers and industrial electrification, which significantly expanded its growth pipeline and led management to raise 2026 earnings guidance, alongside defensive sector rotations into high-yield utility stocks. However, this growth momentum has been offset by quarter-to-quarter financial volatility, including missing Q2 EPS estimates due to tax timing issues and tough comparisons against previous asset sales, as well as valuation pressure as rising interest rate expectations and rich multiples prompted profit-taking among investors.

On Jul. 30, AEP shares closed down more than 1% after reporting its Q2 results. Its adjusted EPS of $1.36 missed Wall Street expectations of $1.49. The company’s revenue was $5.4 billion, topping Wall Street forecasts of $5.3 billion. AEP expects full-year adjusted EPS in the range of $6.25 to $6.55.

For the current fiscal year, ending in December, analysts expect AEP’s EPS to grow 6.7% to $6.37 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.

Among the 24 analysts covering AEP stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” and 12 “Holds.”

This configuration is less bullish than a month ago, with 12 analysts suggesting a “Strong Buy.”

On Aug. 5, Ryan Levine from Citigroup Inc. (C) maintained a “Hold” rating on AEP, with a price target of $142, implying a potential upside of 13.4% from current levels.

The mean price target of $142.95 represents a 14.1% premium to AEP’s current price levels. The Street-high price target of $153 suggests an upside potential of 22.1%.