AEP · AMERICAN ELECTRIC POWER

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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, nuclear, natural gas, renewable, hydro, solar, wind, and other energy sources; owns, operates, maintains, and invests in transmission infrastructure; and engages in the retail supply, and wholesale energy trading and marketing businesses.

Close · 3M

-7.44%

Held by 1 AI ETF

AIEQ0.050%

as of Sep 4

Signal performance

Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.

Buy signals6

Win rate17% (1/6)

Avg buy return-5.83%

AIEQnow 0.050% of fund3 signals

AIEQ · New entry · 1d

weight 0 → 0.050% (new)·stock down 5.3% in the 30 days before

Aug 2·entry $128.32·now $124.71Fresh

-2.81%

since Aug 2

AIEQ · Exit · 1d

weight 0.200% → 0 (exited)·stock up 9.1% in the 30 days before

Jul 1·entry $135.05·now $124.71

-7.66%

since Jul 1

AIEQ · New entry · 1d

weight 0 → 0.180% (new)·stock down 5.8% in the 30 days before

May 30·entry $123.79·now $124.71Fresh

+0.74%

since May 30

LQAIno longer held7 signals

LQAI · Exit · 1d

weight 0.620% → 0 (exited)·stock down 7.8% in the 30 days before

Aug 6·entry $125.26·now $124.71

-0.44%

since Aug 6

LQAI · Weight increase · 3d

weight 0.620% → 0.660% (+0.040 pp)·stock up 0.4% in the 30 days before

Jul 24·entry $135.54·now $124.71Fresh

-7.99%

since Jul 24

LQAI · Weight increase · 2d

weight 0.620% → 0.650% (+0.030 pp)·stock up 0.9% in the 30 days before

Jul 23·entry $134.92·now $124.71Fresh

-7.57%

since Jul 23

LQAI · Weight decrease · 2d

weight 0.650% → 0.630% (-0.020 pp)·stock up 2.5% in the 30 days before

Jul 15·entry $132.50·now $124.71

-5.88%

since Jul 15

LQAI · Weight increase · 2d

weight 0.630% → 0.650% (+0.020 pp)·stock up 5.5% in the 30 days before

Jul 13·entry $135.63·now $124.71Fresh

-8.05%

since Jul 13

LQAI · Weight decrease · 2d

weight 0.660% → 0.630% (-0.030 pp)·stock up 5.6% in the 30 days before

Jul 9·entry $133.85·now $124.71

-6.83%

since Jul 9

LQAI · New entry · 1d

weight 0 → 0.660% (new)·stock up 7.6% in the 30 days before

Jul 7·entry $137.53·now $124.71Fresh

-9.32%

since Jul 7

Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.

Buffett-style framework

Fails the frameworkas of Aug 2

The AI ETFs, specifically AIEQ with a new entry and LQAI showing increasing weight, are accumulating AEP, signaling a positive sentiment toward the company. This stands in contrast to the value-investing framework's verdict of "Fail," primarily driven by concerns regarding the company's financial health as evidenced by its ROE. The AI's actions suggest a different investment thesis or risk tolerance compared to a Buffett-style analysis.

Circle of CompetenceThe regulated nature of an electric utility generally provides predictable revenue and cost structures, allowing for reasonable projection of future cash flows over a ten-year period.
Economic MoatAEP, as a regulated electric utility, benefits from a strong regulatory entitlement moat, enjoying an effective monopoly in its service territories with high barriers to entry and minimal competition.
ManagementWithout direct access to comprehensive shareholder communications and detailed capital allocation history, it is not possible to fully assess management's candor, discipline, or alignment with long-term shareholder interests.
Financial HealthThe reported ROE of 11.84% falls short of the framework's requirement for a 10-year average of at least 15% with no single year below 10%, indicating a potential deficiency in achieving high earnings on equity.
Margin of SafetyA definitive margin of safety cannot be determined without a comprehensive valuation of intrinsic value, which requires detailed financial projections beyond the provided metrics.

American Electric Power passes the initial tests of being within the circle of competence and possessing a strong economic moat due to its regulated utility structure. However, the company fails on the financial health criteria, specifically regarding its return on equity. The management and margin of safety stages could not be definitively judged with the available information, leading to an overall "Fail" verdict.

Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.