Is American Electric Power Stock Underperforming the S&P 500?

Columbus, Ohio-based American Electric Power Company, Inc. (AEP) is an electric public utility holding company that generates, transmits, and distributes electricity for sale to retail and wholesale customers in the United States. Valued at a market cap of $67.8 billion, the company operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. 

Companies with a market cap of $10 billion or more are typically referred to as “large-cap stocks.” AEP fits perfectly into that category, with its market cap exceeding this threshold and reflecting its substantial size and influence in the regulated electric utilities industry.    

Despite its strength, AEP stock slipped 11.4% from its 52-week high of $140.58, reached on July 7. The stock is down 2.6% over the past three months, underperforming the S&P 500 Index’s ($SPX) 1.8% rise during the same time frame.   

Moreover, the scenario stays the same in the longer term. The stock has grown 14.6% over the past 52 weeks, while SPX delivered 18.7% returns over the same time frame, outpacing AEP.

AEP has been trading below its 200-day moving average since August and also below its 50-day moving average since late July, indicating bearish momentum. 

On July 30, AEP stock declined 1.3% following the release of its mixed Q2 2026 earnings. The company’s revenue for the quarter amounted to $5.5 billion and surpassed the Street’s estimates. However, its adjusted EPS for the period came in at $1.36, failing to meet Wall Street’s forecasts. AEP expects full-year earnings in the range of $6.25 to $6.55 per share. 

When stacked against its rival, Exelon Corporation (EXC), AEP has outperformed. Over the past year, EXC stock has grown marginally.

Wall Street currently has a somewhat bullish view of the stock. Among the 23 analysts tracking AEP, the overall consensus stands at a “Moderate Buy.” Its mean price target of $141.71 offers a 13.8% upside potential from current prices.

On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.