5 Best Electric Utility Stocks To Invest In

1. American Electric Power Company, Inc. (NYSE:AEP)

Number of Hedge Fund Holders: 33

Finally there’s American Electric Power Company, Inc. (NYSE:AEP), a utility holding company based in Ohio which provides electricity to approximately 5.5 million customers across 11 states. It provides wholesale electricity to other utilities and municipalities as well. The company generates its electricity through a mix of renewable and non-renewable energy sources. American Electric Power Company, Inc. (NYSE:AEP) is undergoing one of the fastest transitions to green energy in the United States, with a number of renewable energy projects set to unveil in the near future.

American Electric Power Company, Inc. (NYSE:AEP) disclosed an EPS of $1.22 for the first quarter, beating consensus estimates by $0.02. The company’s revenue of $4.6 billion for the quarter also exceeded analysts’ predictions by nearly $200 million and represented year-on-year growth of 7.3%

In late April, Credit Suisse analyst Nicholas Campanella initiated coverage of American Electric Power Company, Inc. (NYSE:AEP) with an ‘Outperform’ rating and a price target of $113. Campanella believes investors should focus on the firm’s strategic pivot of divesting under-earning, low multiple assets. AEP has increased its dividend payments for 17 years in a row, and pays a 3.28% yield as of June 27.

33 out of the 912 hedge funds tracked by Insider Monkey at the close of the first quarter were long American Electric Power Company, Inc. (NYSE:AEP), with combined stakes worth $429.8 million. With a position consisting of 1.2 million shares valued at around $120 million, Millennium Management was the most prominent Q1 shareholder of American Electric Power Company, Inc. (NYSE:AEP).

ClearBridge Investments discussed American Electric Power Company, Inc. (NASDAQ:AEP) in its Q1 2022 investor letter, stating:

“About 5% of the portfolio is in transitioning power companies, typically migrating from coal to renewables. We have been active in encouraging these transitions and added a new position in American Electric Power (NASDAQ:AEP). AEP has the fastest planned renewable energy ramp in the U.S., with plans to both shrink coal and grow renewables by 50% each by 2030. This would drive an 80% emissions reduction, while supporting high single-digit earnings growth at a double-digit return.”

You can also take a look at 10 Best Cheap Stocks To Buy Now and 15 Best Long-Term Stocks To Buy Now

Follow Insider Monkey on Twitter