Why American Electric Power Stock Rose 13% in March
Shares of U.S. utility giant American Electric Power (NASDAQ: AEP) rose a little more than 13% in March according to data from S&P Global Market Intelligence. That's a pretty good month for a utility, but it has to be put into a broader context, since the average utility, using Vanguard Utilities ETF as a proxy, was up 9.5%.
Clearly investors took a more positive view of utilities in general during the month of March and that helped to lift American Electric Power's stock. With the rollout of vaccines across the country, investors have become increasingly confident that the world will eventually learn to deal with the coronavirus. That, in turn, should be a positive for utilities as people go back to work (in an office) and businesses start to reopen more fully. In other words, assuming that the economy starts to rebound, electricity demand should pick up.
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Source Fool.com
