American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, natural gas, renewable, nuclear, hydro, solar, wind, and other energy sources. It also supplies and markets electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities, and other market participants. American Electric Power Company, Inc. was incorporated in 1906 and is headquartered in Columbus, Ohio.

American Electric Power Company, Inc.

The following companies are expected to report earnings prior to market open on 10/29/2025. Visit our Earnings Calendar for a full list of expected earnings releases.
Caterpillar, Inc. (CAT)is reporting for the quarter ending September 30, 2025. The machinery company's consensus earnings per share forecast from the 10 analysts that follow the stock is $4.52. This value represents a 12.57% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2025 Price to Earnings ratio for CAT is 29.56 vs. an industry ratio of 21.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Boeing Company (BA)is reporting for the quarter ending September 30, 2025. The aerospace and defense company's consensus earnings per share forecast from the 8 analysts that follow the stock is $-2.46. This value represents a 76.44% increase compared to the same quarter last year. Zacks Investment Research reports that the 2025 Price to Earnings ratio for BA is -53.48 vs. an industry ratio of 5.30.
Verizon Communications Inc. (VZ)is reporting for the quarter ending September 30, 2025. The wireless (national) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.19. This value represents a no change for the same quarter last year. In the past year VZ has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 3.39%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for VZ is 8.36 vs. an industry ratio of 5.20, implying that they will have a higher earnings growth than their competitors in the same industry.
UBS AG (UBS)is reporting for the quarter ending September 30, 2025. The bank (foreign) company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.48. This value represents a 11.63% increase compared to the same quarter last year. In the past year UBS has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 2.86%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for UBS is 16.43 vs. an industry ratio of 12.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Automatic Data Processing, Inc. (ADP)is reporting for the quarter ending September 30, 2025. The internet software company's consensus earnings per share forecast from the 5 analysts that follow the stock is $2.44. This value represents a 4.72% increase compared to the same quarter last year. In the past year ADP has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 1.8%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ADP is 25.69 vs. an industry ratio of 18.90, implying that they will have a higher earnings growth than their competitors in the same industry.
CVS Health Corporation (CVS)is reporting for the quarter ending September 30, 2025. The medical services company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.36. This value represents a 24.77% increase compared to the same quarter last year. In the past year CVS has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 23.13%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for CVS is 12.96 vs. an industry ratio of 2.30, implying that they will have a higher earnings growth than their competitors in the same industry.
TE Connectivity plc (TEL)is reporting for the quarter ending September 30, 2025. The electrical instrument company's consensus earnings per share forecast from the 6 analysts that follow the stock is $2.29. This value represents a 17.44% increase compared to the same quarter last year. In the past year TEL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2025 Price to Earnings ratio for TEL is 27.53 vs. an industry ratio of 27.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Fiserv, Inc. (FI)is reporting for the quarter ending September 30, 2025. The financial transactions company's consensus earnings per share forecast from the 12 analysts that follow the stock is $2.64. This value represents a 14.78% increase compared to the same quarter last year. In the past year FI has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 2.49%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for FI is 12.44 vs. an industry ratio of 12.00, implying that they will have a higher earnings growth than their competitors in the same industry.
American Electric Power Company, Inc. (AEP)is reporting for the quarter ending September 30, 2025. The electric power utilities company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.81. This value represents a 2.16% decrease compared to the same quarter last year. In the past year AEP has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2025 Price to Earnings ratio for AEP is 19.73 vs. an industry ratio of 19.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Phillips 66 (PSX)is reporting for the quarter ending September 30, 2025. The oil refining company's consensus earnings per share forecast from the 5 analysts that follow the stock is $2.07. This value represents a 1.47% increase compared to the same quarter last year. PSX missed the consensus earnings per share in the 1st calendar quarter of 2025 by -16.88%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for PSX is 25.03 vs. an industry ratio of 9.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Garmin Ltd. (GRMN)is reporting for the quarter ending September 30, 2025. The electrical instrument company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.98. This value represents a 0.50% decrease compared to the same quarter last year. GRMN missed the consensus earnings per share in the 1st calendar quarter of 2025 by -2.42%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for GRMN is 30.74 vs. an industry ratio of 0.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Entergy Corporation (ETR)is reporting for the quarter ending September 30, 2025. The electric power utilities company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.46. This value represents a 2.67% decrease compared to the same quarter last year. In the past year ETR has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 15.38%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for ETR is 25.03 vs. an industry ratio of 19.40, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Earnings Report for October 29, 2025 : CAT, BA, VZ, UBS, ADP, CVS, TEL, FI, AEP, PSX, GRMN, ETR

The Zacks Utility - Electric Power industry presents a compelling case for stable, long-term income due to its regulated framework. This structure allows companies to recover costs and earn steady returns, reducing earnings volatility. With electricity demand remaining consistent across economic cycles and typically attractive dividend yields, utilities serve as a reliable, defensive option for income-oriented investors. Given the sector’s capital-intensive nature, the recent decline in interest rates is especially beneficial, lowering financing costs for long-term infrastructure projects.
The U.S. electric utilities industry is moving beyond its traditional image as a steady income provider, propelled by the accelerating shift toward clean energy. Significant investments in grid modernization, renewable integration and electrification are backed by federal incentives and climate-oriented policies, which are transforming the sector. Amid such a backdrop, let us focus on NextEra Energy NEE and American Electric Power AEP, which are leading U.S. electric utilities with major investments in renewable generation, grid modernization and stable dividend income, making them directly comparable for investors seeking steady returns and clean energy growth exposure.
NextEra Energy is recognized for its focus on renewable energy and sustainable growth. Through significant investments in wind, solar, battery storage and grid modernization, the company is spearheading the clean energy transition. As the parent of Florida Power & Light and NextEra Energy Resources, it manages one of the world’s largest portfolios of wind and solar projects. Backed by solid financials and a proven record of innovation, NEE offers investors a compelling mix of stability and long-term growth aligned with the green energy movement.
American Electric Power benefits from its robust regulated operations and strategic commitment to the clean energy transition. The company is channeling significant capital into renewable and nuclear generation, as well as grid modernization and transmission upgrades, to drive sustainable long-term growth. Backed by steady cash flows, reliable dividend payments and favorable regulatory support, AEP stands to gain from increasing power demand and ongoing decarbonization efforts. The company’s balanced focus on modernization and reliability reinforces its position as a stable, income-oriented utility leader.
NextEra Energy and American Electric Power are among the most influential players in the utility sector. A closer comparison of their fundamentals can help identify which stock offers the stronger investment opportunity.
NEE & AEP’s Earnings Growth Projections
The Zacks Consensus Estimate for NextEra Energy’s earnings per share in 2025 and 2026 has increased year over year by 7.29% and 7.95%, respectively. Long-term (three to five years) earnings growth per share is pegged at 8.04%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for American Electric Power’s earnings per share in 2025 and 2026 has increased year over year by 4.98% and 6.47%, respectively. Long-term (three to five years) earnings growth per share is pegged at 6.43%.
Image Source: Zacks Investment Research
Debt to Capital
The Zacks Utilities sector is a capital-intensive one and huge investments are required at regular intervals to upgrade, maintain and expand operations. The usage of new evolving technology also requires investments. So, the utilities borrow from the market and add it to their internal cash generation to fund the long-term investments. The decline in interest rates from historic highs is going to be beneficial for the capital-intensive utilities.
NextEra Energy’s debt-to-capital currently stands at 60.48% compared with American Electric Power’s 59.78%. Both companies are using debt to fund their business. Both NEE and AEP’s debt levels are marginally lower than the industry’s 61.16%.
Return on Equity
Return on Equity (“ROE”) is an important measure of financial performance that indicates how efficiently a company converts shareholder equity into profits. It highlights management’s effectiveness in utilizing invested capital to grow earnings and enhance shareholder value.
NEE’s current ROE is 12.31% compared with AEP’s 11.55%. Both companies also outperform the industry’s ROE of 10.35%.
Image Source: Zacks Investment Research
Capital Expenditure Plans
Capital expenditure is critical in the sector, as it drives infrastructure development, system reliability and long-term growth. Utilities must consistently invest in power generation, transmission and distribution networks to meet rising demand, integrate renewable energy sources and comply with evolving regulatory standards.
NextEra Energy plans to invest nearly $74.6 billion in the 2025-2029 period to strengthen its infrastructure and add more clean electricity generation assets. American Electric Power plans to invest $54 billion in the 2025-2029 period to strengthen its electric transmission, distribution and generation infrastructure.
NEE & AEP’s Dividend Yield
Dividends are regular payments made by a company to its shareholders and represent a direct way for investors to earn a return on their investment. They are an important indicator of a company’s financial health and stability, often signaling strong cash flow and consistent earnings. Utilities are known for regular dividend payments to their shareholders.
Currently, the dividend yield for NextEra Energy is 2.68%, while that for American Electric Power’s is 3.21%. The dividend yields of both companies are higher than the S&P 500’s yield of 1.49%.
Valuation
NextEra Energy currently appears to trade at a premium compared with American Electric Power on a Price/Earnings Forward 12-month basis. (P/E- F12M).
NEE and AEP are currently trading at 21.53X and 18.67X, respectively, compared with the industry’s 15.45X.
NextEra Energy has gained 18.2% in the last three months compared with American Electric Power’s rally of 7.3% in the same time period.
Image Source: Zacks Investment Research
Rounding Up
NextEra Energy and American Electric Power are investing heavily in their infrastructure to serve millions of customers across the United States.
NEE’s better movement in earnings estimates, stronger ROE and wider capital expenditure plan make it a better choice in the utility space.
Based on the above discussion, NextEra Energy currently has an edge over American Electric Power, with both presently carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

NEE vs. AEP: Which Giant Utility Stock Shines Brighter for Investors?

American Electric Power Company, Inc. AEP is slated to release third-quarter 2025 results on Oct. 29, before market open.
The company delivered an earnings surprise of 11.72% in the last quarter. Moreover, American Electric Power has a trailing four-quarter average earnings surprise of 6.61%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Note Ahead of AEP’s Q3 Results
Most of AEP’s service territories observed warmer-than-normal weather conditions in the third quarter. Such a weather pattern is expected to have boosted electricity demand from AEP’s customers for cooling purposes this summer. This is likely to have contributed to American Electric Power's top line in the third quarter.
American Electric Power Company, Inc. Price and EPS Surprise
Factors like favorable rate revisions in prior quarters, industrial load growth, data center demand and higher normalized retail sales, aided by economic development in the states where AEP operates, are also likely to have boosted the top-line performance in the soon-to-be-reported quarter.
Higher operating & maintenance (O&M), interest expenses and depreciation expenses are likely to have weighed on its third-quarter earnings. Nevertheless, positive revenue expectations are expected to have aided the bottom-line performance.
AEP’s Q3 Expectations
The Zacks Consensus Estimate for AEP’s sales is pegged at $5.64 billion, which indicates year-over-year growth of 4.5%.
The consensus estimate for earnings is pegged at $1.80 per share, which indicates a year-over-year decline of 2.7%.
The consensus estimate for total energy sales for vertically integrated utilities is pinned at 28.87 billion kWh, which indicates year-over-year growth of 0.9%.
What the Zacks Model Unveils for AEP
Our proven model does not conclusively predict an earnings beat for American Electric this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.
Earnings ESP: AEP has an Earnings ESP of -2.35%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, American Electric carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here, we have mentioned a few players from the same industry that also have the right combination of elements to beat on earnings in the upcoming releases:
Xcel Energy, Inc. XEL is slated to report its third-quarter 2025 results on Oct. 30, before market open. It has an Earnings ESP of +0.38% and a Zacks Rank of 3 at present.
XEL’s long-term (three to five years) earnings growth rate is 7.4%. The Zacks Consensus Estimate for earnings is pinned at $1.31 per share, which suggests a year-over-year rise of 4.8%.
Eversource Energy ES is slated to report its third-quarter 2025 results on Nov. 4, after market close. It has an Earnings ESP of +1.59% and a Zacks Rank of 3 at present.
ES’ long-term earnings growth rate is 5.9%. The Zacks Consensus Estimate for earnings is pegged at $1.12 per share.
Duke Energy DUK is scheduled to report its third-quarter 2025 results on Nov. 7, before market open. It has an Earnings ESP of +1.59% and a Zacks Rank of 2 at present.
DUK’s long-term earnings growth rate is 6.40%. The Zacks Consensus Estimate for earnings stands at $1.73 per share, which implies a year-over-year increase of 6.8%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

American Electric Power to Post Q3 Earnings: What's in Store?

Wall Street analysts expect American Electric Power (AEP) to post quarterly earnings of $1.84 per share in its upcoming report, which indicates a year-over-year decline of 0.5%. Revenues are expected to be $5.69 billion, up 5.3% from the year-ago quarter.
The consensus EPS estimate for the quarter has undergone an upward revision of 1.8% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Bearing this in mind, let's now explore the average estimates of specific AEP metrics that are commonly monitored and projected by Wall Street analysts.
According to the collective judgment of analysts, 'Total Revenues- Generation & Marketing' should come in at $464.95 million. The estimate points to a change of -6.8% from the year-ago quarter.
The consensus among analysts is that 'Total Revenues- Transmission and Distribution Utilities' will reach $1.62 billion. The estimate suggests a change of +3% year over year.
It is projected by analysts that the 'Total Revenues- Vertically Integrated Utilities' will reach $3.53 billion. The estimate indicates a change of +6.8% from the prior-year quarter.
Analysts expect 'Total Revenues- AEP Transmission Holdco' to come in at $547.08 million. The estimate indicates a year-over-year change of +6.8%.
Analysts' assessment points toward 'Total Energy Sales - Retail Electric - Transmission & Distribution Utilities - Total Retail' reaching 27204 gigawatt hours / millions of kwh. Compared to the present estimate, the company reported 24815 gigawatt hours / millions of kwh in the same quarter last year.
The collective assessment of analysts points to an estimated 'Total Energy Sales - Retail Electric - Vertically Integrated Utilities - Total Retail' of 25039 gigawatt hours / millions of kwh. Compared to the present estimate, the company reported 25043 gigawatt hours / millions of kwh in the same quarter last year.
Based on the collective assessment of analysts, 'Total Energy Sales - Wholesale Electric - Transmission & Distribution Utilities' should arrive at 527 gigawatt hours / millions of kwh. The estimate is in contrast to the year-ago figure of 504 gigawatt hours / millions of kwh.
The consensus estimate for 'Total Energy Sales - Transmission & Distribution Utilities - Total' stands at 27730 gigawatt hours / millions of kwh. The estimate is in contrast to the year-ago figure of 25319 gigawatt hours / millions of kwh.
Analysts forecast 'Total Energy Sales - Wholesale Electric - Vertically Integrated Utilities' to reach 3827 gigawatt hours / millions of kwh. Compared to the current estimate, the company reported 3559 gigawatt hours / millions of kwh in the same quarter of the previous year.
The average prediction of analysts places 'Total Energy Sales - Vertically Integrated Utilities - Total' at 28866 gigawatt hours / millions of kwh. The estimate is in contrast to the year-ago figure of 28602 gigawatt hours / millions of kwh.
The combined assessment of analysts suggests that 'Operating Earnings (non-GAAP)- Vertically Integrated Utilities' will likely reach $606.24 million. Compared to the current estimate, the company reported $572.40 million in the same quarter of the previous year.
Analysts predict that the 'Operating Earnings (non-GAAP)- Transmission & Distribution Utilities' will reach $231.10 million. Compared to the present estimate, the company reported $245.20 million in the same quarter last year.
View all Key Company Metrics for AEP here>>>
Over the past month, shares of AEP have returned +7.7% versus the Zacks S&P 500 composite's +1.3% change. Currently, AEP carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AEP (AEP) Q3 Earnings on the Horizon: Analysts' Insights on Key Performance Measures

Below is Validea's guru fundamental report for AMERICAN ELECTRIC POWER COMPANY INC (AEP). Of the 22 guru strategies we follow, AEP rates highest using our Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
AMERICAN ELECTRIC POWER COMPANY INC (AEP) is a large-cap growth stock in the Electric Utilities industry. The rating using this strategy is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of AMERICAN ELECTRIC POWER COMPANY INC
More Information on Martin Zweig
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Guru Fundamental Report for AEP - Martin Zweig

Key Points
After stagnating for two decades, U.S. electricity demand is poised to accelerate in the coming years due to industrial reshoring, electrification, and artificial intelligence.
The utilities sector underperformed the S&P 500 during the last 20 years, but the sector has beat the broader market in 2025 and that trend could in the years ahead.
The Vanguard Utilities ETF provides exposure to leading power producers and electricity suppliers like Constellation Energy, Vistra, and American Electric Power.
Despite increased economic activity, U.S. electricity demand stagnated during the last two decades due to the introduction of energy-efficient technologies like LED lights and modern appliances. During that period, the utilities sector underperformed the S&P 500 (SNPINDEX: ^GSPC) by 280 percentage points.
However, Goldman Sachs estimates U.S. electricity consumption will increase at 2.4% annually through 2030, the fastest growth since the internet become popular in the 1990s. That massive increase in demand will be driven by the convergence of three major trends.
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Electrification: Businesses and consumers are transitioning away from fossil fuels in favor of electric cars and electric industrial equipment.
Industrial reshoring: Businesses have a clear incentive to manufacture more products in the U.S. to avoid tariffs imposed by President Trump.
Artificial intelligence: Data center electricity consumption is increasing as AI workloads become more prevalent and AI models become more complex.
Those trends are already moving the stock market. The utilities sector has added 23% year to date, putting it 10 percentage points ahead of the S&P 500. Those market-beating returns could continue through 2030 as electricity demand increases, and investors can lean into that once-in-a-decade opportunity by owning shares of the Vanguard Utilities ETF (NYSEMKT: VPU).
Here are the important details.
The Vanguard Utilities ETF provides exposure to the largest power generators and electric suppliers
The Vanguard Utilities ETF tracks the performance of 69 U.S. utility companies. The index fund is most heavily weighted toward electric utilities, but it also provides exposure to gas, water, and multi-utility companies, as well as independent power producers. The 10 largest holdings are listed by weight below:
NextEra Energy: 10.3%
Constellation Energy: 6.8%
Southern Company: 6.6%
Duke Energy: 6.4%
Vistra: 4%
American Electric Power: 3.9%
Sempra Energy: 3.9%
Dominion Energy: 3.4%
Xcel Energy: 3.1%
Exelon: 3%
Nine of the 10 stocks listed above have outperformed the S&P 500 year to date. Sempra is the only company to underperform. But Constellation Energy, Vistra, and American Electric Power have more than compensated with particularly strong returns.
Constellation Energy is the largest producer of carbon-free energy and the leading competitive retail supplier of power in the U.S. The stock has advanced 81% year to date.
Vistra is the leading competitive power producer and the second largest competitive retail supplier of power in the U.S. The stock has advanced 53% year to date.
American Electric Power is one of the largest regulated power producers and it owns the largest electricity transmission network in the U.S. The stock has advanced 29% year to date.
The Vanguard Utilities ETF has an expense ratio of 0.09%, meaning shareholders will pay $9 per year on every $10,000 invested in the fund. The average expense ratio on similar funds is 1.01%, according to Vanguard.
This Vanguard Utilities ETF is best owned alongside other AI stocks and index funds
The Vanguard Utilities ETF achieved a total return of 186% during the last decade, which is equivalent to 11% annually. Comparatively, the S&P 500 achieved a total return of 300% in the last decade, which is equal to 14.8% annually. The same pattern holds over the last five years as well.
While I believe that pattern will reverse and the utilities sector will beat the S&P 500 over the next three to five years, investors with diversified portfolios have a better chance of benefiting from the artificial intelligence (AI) boom. There are plenty of individual AI stocks worth owning, but investors should also consider an S&P 500 index fund.
The S&P 500 includes many of the most influential stocks in the world, and more than half the companies in the index mentioned AI during their last earnings call. Furthermore, the S&P 500 has typically been a profitable investment over long periods, and the index beat most other asset classes during the last decade, including benchmarks for fixed income, international equities, precious metals, and real estate.
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Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Constellation Energy, Goldman Sachs Group, and NextEra Energy. The Motley Fool recommends Dominion Energy and Duke Energy. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

A Once-in-a-Decade Investment Opportunity: 1 Vanguard Index Fund to Buy for the AI Boom

Fintel reports that on October 16, 2025, Jefferies maintained coverage of American Electric Power (NasdaqGS:AEP) with a Hold recommendation.
Analyst Price Forecast Suggests 0.47% Downside
As of September 29, 2025, the average one-year price target for American Electric Power is $116.96/share. The forecasts range from a low of $109.58 to a high of $131.25. The average price target represents a decrease of 0.47% from its latest reported closing price of $117.51 / share.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Electric Power is 18,897MM, a decrease of 8.56%. The projected annual non-GAAP EPS is 5.97.
What is the Fund Sentiment?
There are 2,544 funds or institutions reporting positions in American Electric Power. This is an decrease of 7 owner(s) or 0.27% in the last quarter. Average portfolio weight of all funds dedicated to AEP is 0.34%, an increase of 8.35%. Total shares owned by institutions decreased in the last three months by 3.55% to 513,083K shares. The put/call ratio of AEP is 0.41, indicating a bullish outlook.
What are Other Shareholders Doing?
GQG Partners holds 20,034K shares representing 3.75% ownership of the company. In its prior filing, the firm reported owning 19,631K shares , representing an increase of 2.01%. The firm decreased its portfolio allocation in AEP by 13.45% over the last quarter.
Wellington Management Group Llp holds 17,672K shares representing 3.30% ownership of the company. In its prior filing, the firm reported owning 22,103K shares , representing a decrease of 25.07%. The firm decreased its portfolio allocation in AEP by 28.37% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 17,181K shares representing 3.21% ownership of the company. In its prior filing, the firm reported owning 16,852K shares , representing an increase of 1.91%. The firm decreased its portfolio allocation in AEP by 13.63% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 15,163K shares representing 2.84% ownership of the company. In its prior filing, the firm reported owning 14,817K shares , representing an increase of 2.28%. The firm decreased its portfolio allocation in AEP by 13.67% over the last quarter.
Geode Capital Management holds 13,352K shares representing 2.50% ownership of the company. In its prior filing, the firm reported owning 13,067K shares , representing an increase of 2.13%. The firm decreased its portfolio allocation in AEP by 13.58% over the last quarter.
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Jefferies Maintains American Electric Power (AEP) Hold Recommendation

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares U.S. Utilities ETF (Symbol: IDU) where we have detected an approximate $130.5 million dollar outflow -- that's a 7.8% decrease week over week (from 14,800,000 to 13,650,000). Among the largest underlying components of IDU, in trading today NextEra Energy Inc (Symbol: NEE) is up about 2.4%, Vistra Corp (Symbol: VST) is up about 0.4%, and American Electric Power Co Inc (Symbol: AEP) is higher by about 1.6%. For a complete list of holdings, visit the IDU Holdings page » The chart below shows the one year price performance of IDU, versus its 200 day moving average:
Looking at the chart above, IDU's low point in its 52 week range is $91.9101 per share, with $114.37 as the 52 week high point — that compares with a last trade of $114.23. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

IDU, NEE, VST, AEP: Large Outflows Detected at ETF

PPL Corporation PPL remains committed to research and development (R&D) and the advancement of technologies needed to achieve net-zero emissions. PPL believes that achieving a net-zero future requires innovative, scalable technologies that can address climate change in a safe, reliable, and affordable manner.
PPL is advancing clean energy technologies to support a low-carbon future. The company is developing carbon capture solutions to trap and store emissions from power plants and industries underground, preventing their release into the atmosphere. It is also evaluating various energy storage methods — electrical, mechanical, and chemical — to enhance grid reliability and flexibility.
PPL is also researching ways to better integrate renewable sources, such as solar and wind, into the grid through improved forecasting, demand management, and coordination. Additionally, it is expanding the use of distributed energy resources (DERs), such as solar panels, battery storage, electric vehicles, and demand response systems.
The company is also exploring advanced nuclear technologies to provide reliable, carbon-free electricity.
The Electric Power Research Institute and Gas Technology Institute launched the Low-Carbon Resources Initiative (in 2020) — a five-year global collaboration across the electric and gas sectors to advance safe, reliable, and affordable low-carbon energy solutions.
As one of the 18 anchor sponsors of a major clean energy initiative led by the Institute, PPL is helping drive collaborative research and innovation. The initiative began with a $10 million investment, and industry partners, including PPL, have contributed more than $100 million to accelerate the transition to a low-carbon energy future.
Utilities’ Focus on R&D
Utilities are focused on R&D projects to further improve grid reliability and provide enhanced services to their customers.
Southern Company SO has a diverse R&D portfolio, which is focused on exploring a full spectrum of solutions to address the energy industry’s emerging challenges while meeting the immediate and future needs of customers.
American Electric Power AEP demonstrates a strong focus on R&D through historical innovation in Extra High Voltage 765 kV transmission lines. This transmission backbone is critical for connecting customers to reliable, diverse generation sources that power homes and businesses.
PPL’s Earnings Estimates
The Zacks Consensus Estimate for 2025 and 2026 EPS indicates an increase of 7.10% and 8.48%, respectively, year over year.
Image Source: Zacks Investment Research
PPL Stock Trading at a Premium
PPL is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 19.01X compared with the industry average of 15.32X.
Image Source: Zacks Investment Research
PPL Stock Price Performance
In the past three months, the company’s shares have risen 9% compared with the industry’s 7.5% growth.
Image Source: Zacks Investment Research
PPL’s Zacks Rank
PPL currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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How Is PPL Accelerating Decarbonization Through Research & Development?

American Electric Power Company, Inc. AEP is steadily investing in infrastructure upgrades to enhance operational reliability and effectively meet increasing customer demand. The company is also investing in expanding its renewable generation portfolio.
However, this Zacks Rank #3 (Hold) company is exposed to risks like a weak solvency position.
AEP’s Positive Catalysts
American Electric intends to allocate $54 billion toward electricity generation, transmission and distribution, including renewable projects, over the 2025-2029 period. The company expects these strategic investments to support a long-term earnings growth rate of 6-8%.
AEP’s broad geographic footprint enables it to draw revenues from multiple states, offering an advantage over utilities limited to a single region. The company operates the nation’s largest electricity transmission system, spanning about 40,000 circuit miles, including nearly 2,100 circuit miles of 765 kV lines that form a key part of the eastern U.S. electric interconnection grid. American Electric plans to invest roughly $34 billion in its transmission and distribution operations from 2025 to 2029 to build a more resilient grid and provide tailored energy solutions to its customers.
In the second quarter of 2025, AEP invested $1.4 billion to acquire three power plants, including the Pixley Solar Energy Facility and Flat Ridge IV Wind Energy Facility. As of June 2025, the company had secured approvals from several state regulatory commissions to purchase around 1,979 megawatts (MW) of renewable generation assets through $4.7 billion in investments. AEP also plans to allocate $9.9 billion toward regulated renewable growth between 2025 and 2029. These initiatives are expected to significantly expand American Electric’s renewable generation portfolio.
Challenges Facing AEP Stock
As of June 30, 2025, American Electric Power reported a generating capacity of 24,400 MW, of which 10,700 MW came from coal-fired plants. The company is currently assessing the impact of four newly issued Environmental Protection Agency rules on its fleet. These regulations could materially affect operating results, as AEP updates cost projections to ensure compliance while continuing to deliver reliable and affordable electricity.
As of June 30, 2025, American Electric had $41.31 billion in long-term debt, while its cash equivalents totaled $0.23 billion. Its current debt was $4.71 billion on the same date. With both current and long-term debt levels exceeding its cash reserves, AEP appears to be in a relatively weak solvency position.
AEP Stock Price Movement
In the past year, AEP shares have risen 13.1% compared with the industry’s growth of 8.3%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the same industry are Dominion Energy, Inc. D, Exelon Corporation EXC and IDACORP Inc. IDA, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
D’s long-term (three to five years) earnings growth rate is 13.6%. The Zacks Consensus Estimate for its 2025 earnings per share (EPS) stands at $3.39, which calls for a year-over-year jump of 22.4%.
EXC’s long-term earnings growth rate is 6.3%. The Zacks Consensus Estimate for its 2025 EPS stands at $2.69, which indicates a year-over-year rally of 7.6%.
IDA’s long-term earnings growth rate is 8%. The Zacks Consensus Estimate for its 2025 EPS is pegged at $5.84, which implies a year-over-year rise of 6.2%.
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IDACORP, Inc. (IDA) : Free Stock Analysis Report
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