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SunTrust Has Q4 Portfolio ‘Catch-Up’ Stocks to Buy Now

Portfolio managers and others in charge of investments are facing the first down year in the markets since 2008. What can be even worse for active managers is trailing your benchmark. For example, if your benchmark is the S&P 500, it was down 6.56% for the year at the end of last week. If you are down, say, 9%, then you are trailing the benchmark.

In a new report, SunTrust Robinson Humphrey combed through the its analysts and coverage universe to come up with 26 stocks to Buy that are designed to help clients “catch up” to their benchmarks. The stocks that made the cut are part of a compelling list of lagging stocks rated Buy that could outperform the overall market this quarter.

We chose four that look like they do indeed have solid upside potential.

American Electric Power

American Electric Power Co. Inc. (NYSE: AEP) is one of the largest electric utilities in the United States, delivering electricity to more than 5.3 million customers in 11 states. The company ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the United States. American Electric also owns the nation’s largest electricity transmission system, a more than 40,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.

ALSO READ: Top Stocks to Buy Now for Big Potential Q4 Rally

Many on Wall Street feel that the stock trades at a discount to its utility peers, and they feel it deserves a premium. They also think the company will sell generating assets and buy back shares with the proceeds, which will be accretive.

American Electric Power shareholders are paid a solid 3.8% dividend. The SunTrust price target for the stock is...