American Electric Power Stock Surges 9.5%, With A 8-Day Winning Spree
American Electric Power (AEP) stock hit day 8 of a continuous streak of days with gains, with cumulative gains over this period amounting to a 9.5% return. The company has gained about $6.0 Bil in value over the last 8 days, with its current market capitalization at about $63 Bil. The stock remains 31.5% above its value at the end of 2024. This compares with year-to-date returns of 14.2% for the S&P 500.
AEP provides electricity generation, transmission, and distribution across the U.S., utilizing diverse energy sources including coal, natural gas, nuclear, hydro, solar, and wind. After this rally, is AEP still a buy – or is it time to lock in gains? Deep dive with Buy or Sell AEP.
AEP stock has jumped meaningfully recently and we currently find it risky. This may feel like a caution, and there is significant risk in relying on a single stock. However, there is a huge value to a broader diversified approach. If you seek an upside with less volatility than holding an individual stock, consider the High Quality Portfolio (HQ) – HQ has outperformed its benchmark – a combination of S&P 500, Russell, and S&P midcap index, and achieved returns exceeding 91% since its inception. Risk management is key – consider, what could long-term portfolio performance be if you blended 10% commodities, 10% gold, and 2% crypto with HQ’s performance metrics.
Comparing AEP Stock Returns With The S&P 500
The following table summarizes the return for AEP stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | AEP | S&P 500 |
|---|---|---|
| 1D | 2.2% | -0.4% |
| 8D (Current Streak) | 9.5% | 1.7% |
| 1M (21D) | 9.9% | 3.4% |
| 3M (63D) | 13.7% | 7.2% |
| YTD 2025 | 31.5% | 14.2% |
| 2024 | 18.2% | 23.3% |
| 2023 | -11.0% | 24.2% |
| 2022 | 10.4% | -19.4% |
What is the point? Momentum often precedes conviction. A multi-day win streak can signal growing investor confidence or spark follow-on buying. Tracking such trends can help you ride the strength, or prepare for a well-timed entry if momentum fades. However, big gains can follow sharp reversals – but how has AEP behaved after prior drops? See AEP Dip Buyer Analysis to learn more.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 64 S&P constituents with 3 days or more of consecutive gains and 69 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 41 | 50 |
| 4D | 14 | 9 |
| 5D | 2 | 5 |
| 6D | 4 | 3 |
| 7D or more | 3 | 2 |
| Total >=3 D | 64 | 69 |
Key Financials for American Electric Power (AEP)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $19.0 Bil | $19.7 Bil |
| Operating Income | $3.7 Bil | $4.4 Bil |
| Net Income | $2.2 Bil | $3.0 Bil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ1 | 2025 FQ2 |
|---|---|---|
| Revenues | $5.5 Bil | $5.1 Bil |
| Operating Income | $1.3 Bil | $1.4 Bil |
| Net Income | $800.2 Mil | $1.2 Bil |
While AEP stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.