It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.It also includes access to the Zacks Style Scores. What are t ...

Group 1 - American Electric Power Company, Inc. (AEP) is recognized in the Dividend Contenders List as one of the top 20 stocks [1] - Morgan Stanley has raised its price target for AEP to $125 from $120, maintaining an Overweight rating, while noting that utilities lagged behind the S&P's return in December [2] - AEP's unit is set to purchase a significant portion of its option for solid oxide fuel cells in a deal valued at approximately $2.65 billion, aligning with its plan to develop a fuel cell power generation facility [3][4] Group 2 - AEP has secured a long-term offtake agreement for 20 years with an unnamed customer, which will take the full output of the planned fuel cell facility near Cheyenne, Wyoming, contingent on certain conditions expected to be met by Q2 2026 [5] - AEP operates as an electric utility holding company, providing services to over five million retail customers across multiple states including Arkansas, Indiana, Kentucky, and others [6]

Company Overview - American Electric Power Company, Inc. (NASDAQ:AEP) is involved in generating, transmitting, and distributing electricity using a mix of coal, natural gas, nuclear, renewable, and other energy sources [2]. Investment Insights - AEP is considered a strong utility stock and has been favored by investment analysts for multiple years [1]. - There is a comparison made between AEP and other sectors such as transport (Uber), retail (Amazon), tobacco (Philip Morris), and technology (NVIDIA), highlighting the diversification of the portfolio [1]. Market Position - While AEP shows potential as an investment, some analysts suggest that certain AI stocks may offer greater upside potential and carry less downside risk [3].

Core Insights - The energy sector is experiencing a shift from reliance on government subsidies and environmental goals to addressing the immediate energy demands of artificial intelligence (AI) [3] - The market is transitioning from a phase of speculative green technologies to one focused on commercial viability, emphasizing companies with solid order books [4] - A significant deal between Bloom Energy and American Electric Power marks a turning point, highlighting the demand for distributed energy solutions [5] Company Developments - Bloom Energy has secured a landmark agreement valued at approximately $2.65 billion for up to 1 gigawatt (GW) of solid oxide fuel cells, representing the largest commercial procurement in the fuel cell sector [5] - Following the announcement of the deal, Bloom Energy's stock has seen significant appreciation, trading near all-time highs in the $145-$150 range as of mid-January 2026 [6] - The agreement will supply immediate power to growing data center hubs, addressing the urgent demand created by the rapid construction of AI data centers [6]

Core Viewpoint - American Electric Power Company, Inc. (AEP) has been downgraded from 'Buy' to 'Neutral' by BofA analyst Ross Fowler due to valuation concerns despite its strong growth outlook and recent performance [3]. Group 1: Company Performance - AEP is one of the largest electric utilities in the United States, serving millions of homes and businesses daily [2]. - In 2025, AEP's stock surged by 25%, outperforming the overall S&P Utility index, which gained approximately 12.7% [3]. - AEP is currently trading at a 4% premium compared to its peers, which limits its upside potential [3]. Group 2: Growth Initiatives - AEP announced plans to acquire solid oxide fuel cells from Bloom Energy for $2.65 billion, aiming to develop a fuel cell power generation facility in Wyoming [4]. - The company has signed a 20-year offtake agreement for 100% of the output from the planned facility with an unnamed customer [4]. Group 3: Analyst Insights - BofA acknowledges AEP's strong growth outlook, particularly in Texas, but expects regulatory relationships to take time to develop, leading to limited near-term prospects [3].

Core Insights - The S&P Utilities index increased by 12.7% in 2025, underperforming the S&P 500's 16.4% gains, with the utilities sector benefiting significantly from the AI boom and increased demand from data centers [1][2] - Long-term power purchase agreements (PPAs) signed by hyperscalers with utility companies contributed to the outperformance of utility stocks for most of 2025, although concerns about a potential AI bubble led to a pullback in the last quarter [2] - The Energy Information Administration projects that US electricity demand, which reached a record high in 2025, will continue to grow, driven by data centers, cryptocurrency, and the electrification of homes and businesses [3] Utility Sector Performance - The utilities sector has emerged as a major beneficiary of the AI boom, with significant investments flowing into energy-intensive data centers [1] - Despite a late-year pullback due to investor concerns about the sustainability of AI-related investments, the sector maintains strong growth potential [2] Methodology for Stock Selection - The article identifies the best-performing utility stocks based on historical data from Yahoo Finance, focusing on stocks with a market cap of at least $2 billion and ranking them by gains from December 31, 2024, to December 31, 2025 [5] - The analysis includes the number of hedge fund investors for each stock as of Q3 2025, indicating interest from institutional investors [5][6] Company Highlights - **Entergy Corporation (NYSE:ETR)**: Achieved a share price gain of 21.91% in 2025, supported by analyst upgrades and strong industrial sales growth [7][9][10] - **American Electric Power Company, Inc. (NASDAQ:AEP)**: Experienced a 25.02% share price gain in 2025, although faced a downgrade from 'Buy' to 'Neutral' due to valuation concerns despite a strong growth outlook [12][13][14]

Core Viewpoint - The Trump administration is expected to sign an agreement aimed at curbing electricity prices, leading to a decline in stock prices of major U.S. power companies [1] Company Impact - Talen Energy (TLN.US) shares fell by 8% following the news [1] - Vistra Energy (VST.US) experienced a 6.9% drop in its stock price [1] - Constellation Energy (CEG.US) saw a decrease of 6.3% in its share value [1]

Core Insights - Clover Health Investments, Corp. reported a 53% year-over-year growth in Medicare Advantage (MA) PPO plans for the 2026 plan year, reaching approximately 153,000 members, indicating disciplined growth in core markets and strong retention [1][5] - The company anticipates achieving its first-ever full year GAAP Net Income profitability in 2026, driven by strong cohort economics and operational efficiencies [5][4] Key AEP and Business Highlights - Clover's AEP performance reflects the effectiveness of robust plan benefits, Clover Assistant-enabled clinical performance, and a deepening market presence, leading to market-leading growth [3][4] - The company maintained stable plan benefits year-over-year, achieving over 95% member retention during the AEP, reinforcing the stability of its membership base [5] - Over 97% of Clover's January 1, 2026 membership is in its flagship PPO plan, which is ranked 1 nationally on core HEDIS metrics for the second consecutive year, showcasing the company's commitment to clinical quality [4][5] Strategic Growth Initiatives - Clover's growth strategy focuses on concentrated efforts in established core markets, leveraging strong Clover Assistant coverage and a differentiated Home Care offering to enhance care delivery and improve cohort performance [5][4] - The company expects significant improvements in new member cohort performance, supported by a 4.0 Stars rating for its PPO plans, favorable CMS rate updates, and continued operational leverage as SG&A efficiency improves with scale [5][4]

Core Insights - American Electric Power (AEP) has confirmed a $2.65 billion agreement to acquire Bloom Energy's solid oxide fuel cells, indicating a significant investment in clean energy technology [1] Company Summary - The acquisition aligns with AEP's strategy to enhance its renewable energy portfolio and reduce carbon emissions [1] - Bloom Energy's solid oxide fuel cells are expected to play a crucial role in AEP's efforts to transition to cleaner energy sources [1] Industry Summary - The deal reflects a growing trend in the energy sector towards investing in advanced technologies that support sustainability and energy efficiency [1] - The acquisition is part of a broader movement among utility companies to adopt innovative solutions to meet regulatory requirements and consumer demand for cleaner energy [1]

Core Viewpoint - Utility stocks have historically been viewed as a necessary but unexciting investment choice, akin to eating vegetables [1] Group 1 - Utility stocks are often perceived as stable but lack the excitement of other investment options [1]