Virginia-based The AES Corporation (AES) is a global energy company and major player in power generation and utilities, with operations spanning the United States and multiple international markets. AES has a market capitalization of $9.9 billion, and it owns and operates a diversified portfolio of power plants and utility systems that generate, transmit, distribute, and sell electricity to residential, commercial, industrial, and governmental customers.
Companies with a valuation between $2 billion and $10 billion are typically labeled “mid-cap stocks.” AES neatly falls into this group, indicating a meaningful scale and strong influence within the diversified utilities sector. AES serves millions of customers through regulated utilities and wholesale power contracts and has a global installed capacity of over 32,000 megawatts. Its business structure comprises utility operations (regulated distribution), energy infrastructure, renewable energy development, and emerging technologies such as grid storage and hybrid systems. The company is also expanding long-term power purchase agreements, particularly for corporate customers and data centers.
Despite its market stature, AES is still nursing a pullback from its recent peak. The stock is trading 12.2% below its 52-week high of $15.51set on Oct. 1. That said, momentum has improved in the near term, with AES climbing 7.2% over the past three months, outpacing the Nasdaq Composite’s ($NASX) 3.5% rise during the same period.
Zooming out, performance has been more muted. AES is up 5.8% year to date, well behind NASX’s 19.7% gain, and has delivered a modest 3.6% return over the past 52 weeks versus the index’s 14.6% rise.
From a technical standpoint, the stock has held above its 200-day moving average since early July, although it slipped below its 50-day moving average last month.
On Nov. 5, AES reported its third-quarter 2025 results, which were well received by the market, driving the stock up 5.8%. Its revenue stood at $3.4 billion, and the company posted adjusted EPS of $0.75, both exceeding expectations, alongside an 18.9% year-over-year increase in adjusted EBITDA to approximately $830 million, supported by strong performance in its renewable portfolio and improved margins in its U.S. utility operations. Modest revenue growth, continued progress on rate-base investments, and management’s decision to reaffirm full-year 2025 guidance further reinforced investor confidence in AES’s earnings trajectory and clean-energy transition strategy.
Its rival, Sempra (SRE), has surged marginally in 2025 and dipped marginally over the past year, trailing AES.
Meanwhile, analysts are cautiously optimistic about AES. Out of the 12 analysts covering the stock, the consensus rating is a “Moderate Buy.” Its mean price target of $15.55 suggests a 14.2% 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.
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