Valued at $9.6 billion by market cap, Arlington, Virginia-based The AES Corporation (AES) operates as a diversified power generation and utility company. It provides affordable and sustainable energy through its diverse portfolio of thermal and renewable generation facilities as well as distribution businesses.
The utilities major has significantly underperformed the broader market over the past year. AES stock has gained 1.6% on a YTD basis and plunged 25.5% over the past 52 weeks, compared to the S&P 500 Index’s ($SPX) 8.2% surge in 2025 and 17% gains over the past year.
Looking closer, the stock has also underperformed the sector-focused Utilities Select Sector SPDR Fund’s (XLU) 12.6% surge in 2025 and 18.6% returns over the past 52 weeks.
Despite delivering weaker-than-expected financials, AES stock prices gained 2.3% in the trading session following the release of its Q1 results on May 1. The company’s overall topline for the quarter dropped 5.2% year-over-year to $2.9 billion, falling short of Street expectations. Further, its adjusted EPS plunged 46% year-over-year to $0.27, missing the consensus estimates by a staggering 27%.
However, its operating cash flows surged by an impressive 89.9% year-over-year to $545 million, and the company also reaffirmed its full-year earnings guidance, providing reassurance to investors.
For the full fiscal 2025, ending in December, analysts expect AES to report an EPS of $2.14, remaining flat year-over-year. The company has a mixed earnings surprise history. While it missed the Street’s bottom-line estimates once over the past four quarters, it has surpassed the projections on three other occasions.
The stock has a consensus “Moderate Buy” rating overall. Of the 10 analysts covering the AES stock, opinions include five “Strong Buys,” three “Holds,” one “Moderate Sell,” and one “Strong Sell.”
This configuration is slightly less bullish than a month ago, when six analysts gave “Strong Buy” recommendations.
On Jul. 21, Susquehanna analyst Biju Perincheril maintained a “Positive” rating on AES, while raising the price target from $15 to $16.
Its mean price target of $14.40 suggests a 10.1% upside from current price levels, while the Street high target of $23 represents a staggering 75.8% premium.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
