AES Stock Analysis — AES Corporation
Sector: Utilities
AI Verdict
AES trades at 6.3x next year's earnings—far below the 18x utility median—so you're getting unusually cheap exposure to a utility with real earnings growth if its regulatory and renewables moat holds up.
Competitive Moat
AES owns and operates a diversified portfolio of power generation assets across multiple geographies, including a growing base of renewable energy projects. Its long-term power purchase agreements and regulatory relationships create stable cash flows that are difficult for new entrants to replicate.
Summary
AES is trading at just 6.3x next year's earnings while analysts expect 23.6% EPS growth, making it unusually cheap for a utility with a renewables angle.
Where It Stands
AES is up 17.39% over the past year, with an RSI of 63.8 signaling shares are approaching pullback territory, and it trades at 6.3x forward earnings versus an 18x sector median.
Key Metrics
- RSI: 63.8 — Near Overbought
- Trailing P/E: 7.8x
- Forward P/E: 6.3x
- PEG Ratio: 0.33
- Earnings Growth: +0.2%
- Revenue Growth: +0.0%
- Market Cap: $10.5B
- Dividend Yield: 0.05%
- 1-Year Return: 17.39%
- 52-Week High: $17.65
- 52-Week Low: $12.15
Analyst Consensus
0 Buy · 13 Hold · 5 Sell (18 analysts)
Bull Case
With a forward P/E of 6.3x and 23.6% expected EPS growth, AES offers much faster earnings growth than typical utilities at a steep discount to the sector's 18x median multiple.
Bear Case
If the P/E multiple reverts even partway toward the sector median, an RSI of 63.8 suggests a near-term pullback could erase a chunk of the 17.39% one-year gain.
Catalyst to Watch
Watch for updates on renewable project execution and regulatory approvals, as delays or cost overruns could undermine the 23.6% EPS growth target.