Why American Electric Power Company (AEP) Surged on Monday

We recently compiled a list of the 10 Firms Post Impressive Gains on Monday. In this article, we are going to take a look at where American Electric Power Company (NASDAQ:AEP) stands against the other stocks.

Wall Street ended the first trading day of the week on a mixed note, with the Dow Jones the sole gainer, up 0.65 percent.

The S&P 500 and Nasdaq both fell by a whopping 1.46 percent and 3.07 percent, respectively, over fears that China is overtaking the US in innovations in the Artificial Intelligence industry, dampening confidence at a time when the world’s largest economy is bolstering investments in the sector.

Meanwhile, ten companies under mixed sectors ended the day stronger. In this article, we will take a look at which of the 10 companies posted impressive gains during a broader market pessimism and look at the reasons behind their rally.

Monday’s top advancers only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A series of large electrical transmission towers providing power to the public.

American Electric Power Company (NASDAQ:AEP)

American Electric Power saw a 4.53-percent jump in its share prices on Monday to close at $102.63 apiece as investors repositioned their portfolios ahead of its full-year earnings report next month.

Analysts expect the company to report earnings per share (EPS) for the fourth quarter of the year of $1.24 apiece, just marginally higher than the $1.23 EPS registered in the same period a year ago.

American Electric Power, one of the largest power distribution utilities in the US, has surpassed analysts’ bottom-line estimates in two of the past four quarters.

American Electric Power energizes communities and businesses across 11 states, namely Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia.

Overall AEP ranks 5th on our list of Monday’s top advancers. While we acknowledge the potential of AEP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AEP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.