The AES Corporation (AES) Stock Analysis: Riding The AI Wave | 2-Minute Analysis
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The AES Corporation (AES) Stock Analysis: Riding The AI Wave | 2-Minute AnalysisIs The AES Corporation (AES), the $12.3 billion global energy leader, a buy, hold, or sell? Find out why the Quant system is cautious despite a massive 79% forward EPS growth and strong analyst backing in this episode of 2-Minute Analysis!Mar. 05, 2026 4:00 PM ET Follow The AES Corporation on Seeking Alpha! Learn more about Seeking Alpha Quant Ratings Get Started With Seeking Alpha Premium Now This video's transcript was generated by a third party. It is not curated or reviewed and is provided for convenience and information purposes only. The accuracy and completeness of the transcript are not guaranteed. Welcome to 2 Minute Analysis. Our goal is to not only entertain, but provide value and insights about the investments you care about. Today's episode is from this comment. So, let's throw 2 minutes on the clock and dive-in. Today, we are diving into The AES Corporation, ticker symbol AES. Kicking things off here with the Quant rating system, it is currently a Hold rating on the stock, and we're going to dive into the Factor Grade metrics here in just a moment.
Seeking Alpha Analysts currently have a Buy in aggregate on this stock, and that's from 2 analysts providing their coverage in the last 90-days. Lastly, Wall Street analysts currently have a Buy on this stock as well, and that's from 14 analysts providing their coverage in the last 90-days. To learn more about how the Seeking Alpha Quant system and Seeking Alpha Analysts outperform the market, visit the link in the description of this video. Now, let's dive deeper. This is currently a $12.31 billion market capitalization company found within the utility sector and the independent power producers and energy traders industry. First things first, jumping into this Valuation grade, which is currently an A, we can see that the PEG non-GAAP forward ratio is currently 0.83, compared to the sector at 2.66, showcasing almost a 68.5% discount to the sector. Jumping into the Growth grade currently a D-, that EPS GAAP growth forward is currently sitting at 79.17%, compared to the sector at just 7.89%. Also want to highlight the operating cash flow growth year-over-year is 63.50%, compared to the sector at just 4.14%. Very favorable metric there. Jumping into the Profitability is currently a C grade. We can look at a return on common equity sitting at 30.16%, compared to the sector at just 9.36%. And they do have a nice cash from operations over the trailing 12-months of 3.91 billion, compared to the sector at just 1.44 billion. Jumping into the Momentum grade that is currently an A+, pretty favorable across the board here, obviously, with this company being within the power producers industry, 66.47% compared to the sector at just 24.06% riding the AI wave. Jumping into the Revisions grade, currently a C-. That is 3 up revisions and 3 down revisions for earnings per share over the last three months, and 3 up revisions and 1 down revision for revenue numbers over the last three months. Now that this is a utility, it does pay a dividend. You will see the dividend yield is 4.07%. Dividend safety grade is currently a B-. The dividend growth is a D. The dividend yield is an A grade, and the dividend consistency is a B-. Jumping in here, we can see over consistency, they have been paying their dividend for 13 years and growing it for 12 years. And if we take a quick look at the dividend yield, it is currently beating its sector on that yield, which is nice and favorable for shareholders. Obviously, want to highlight as well, AES Corporation is taking a little bit of a hit today. So, if you want to get all the free breaking news alerts about what's going on with this company right now, come here to Seeking Alpha. Click this follow button here at the top of the page. You'll get free breaking news alerts on The AES Corporation and any other symbol that you want to follow here on Seeking Alpha. And that's going to wrap it up for this episode. If you have a ticker you want us to cover, add it to the comment section below, and don't forget to follow Seeking Alpha so you get notified when the next 2 Minute Analysis gets published. Past performance is no guarantee of future results. Content provided for informational purposes only. Seeking Alpha does not offer any personalized investment advice and is not a licensed securities dealer, broker, US investment adviser, or investment bank. Follow The AES Corporation on Seeking Alpha! Learn more about Seeking Alpha Quant Ratings Get Started With Seeking Alpha Premium Now Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.