Arlington, Virginia-based The AES Corporation (AES) operates as a power generation and utility company in the United States and internationally. With a market cap of $7.4 billion, the company owns and operates power plants to generate and sell power to customers, industrial users, and other intermediaries.
Companies worth $2 billion to $10 billion are typically referred to as "mid-cap stocks." AES fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the diversified utilities industry.
Despite its strengths, the stock has plunged 48.7% from its 52-week high of $20.30 touched on Oct. 1, 2024. Over the past three months, AES stock has declined 20.9%, underperforming the Utilities Select Sector SPDR Fund’s (XLU) 1.9% rise during the same time frame.
AES stock has declined 19.1% on a YTD basis, underperforming XLU’s 6.7% rise in 2025. Moreover, AES has tanked 44.8% over the past 52 weeks, underperforming XLU’s 15.7% surge.
To confirm its recent downtrend, AES has been trading below its 200-day moving average since early October and below its 50-day moving average since mid-June.
On May 1, AES shares closed down marginally following the release of its Q1 earnings. The power company posted revenue of $2.93 billion in the period, which did not meet Street forecasts. Additionally, its adjusted EPS came in at $0.27, which missed consensus estimates by 27%. Looking ahead, the company expects full-year earnings in the range of $2.10 to $2.26 per share.
Its rival, Sempra (SRE), has declined 15.6% in 2025 and 1.9% over the past year, outperforming the stock.
Among the 11 analysts covering the AES stock, the consensus rating is a “Moderate Buy.” Its mean price target of $14 suggests an impressive 34.5% upside potential from current price levels.
On the date of publication, Kritika Sarmah 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.
