Despite its share price sitting below its recent high, AES Corporation (AES) has beaten the broader utilities index over recent periods. The Arlington, Virginia-based power generator has outperformed the utilities sector, even as its stock remains below its peak.
A look at how AES compares to other companies and the wider field shows where it sits among its competitors.
The Market Cap Test
With a market value of $10.6 billion, AES falls into the large-cap category. Its business runs through four divisions: Renewables, Utilities, Energy Infrastructure, and New Energy Technologies. The company holds or controls power plants that supply customers such as utilities, industrial users, and other intermediaries.
The stock currently trades 16% below its 52-week high of $17.65, reached on Feb. 27.
Short-Term Momentum
Over the past three months, AES has risen 1.4%, while the State Street Utilities Select Sector SPDR ETF (XLU) has fallen 9.2%. That is a meaningful gap.
The longer picture tells the same story. AES has gained 13.6% over the past 52 weeks, compared with XLU’s 4.3% drop.
Moving Averages
AES has been trading above its 200-day moving average since last year. It has also sat above its 50-day moving average since this month.
Acquisition Bid
AES is already on its path to being acquired by Global Infrastructure Partners (GIP), a part of BlackRock, through a deal to acquire all outstanding common shares for $15 in cash. That represents a total equity value of approximately $10.7 billion and an enterprise value of approximately $33.4 billion.
Management highlighted AES’ flexibility to invest in critical energy solutions as a result of this acquisition, capitalizing on GIP’s extensive industry knowledge after shareholders approved the move.
Sempra’s Comparison
Sempra (SRE) has declined 2.4% over the past year, underperforming AES.
The Analyst View
Nine analysts are watching AES, and Wall Street’s judgment on the company remains uncertain. The group’s combined view comes to a “Hold.”, with an average price goal of $15 pointing toward a possible gain of 1.1% from where the stock sits today.
Key Facts Box
- Market cap: $10.6 billion
- 52-week high: $17.65, reached Feb. 27
- Three-month gain: 1.4% (AES); 9.2% loss (XLU)
- 52-week gain: 13.6% (AES); 4.3% loss (XLU)
- Acquisition bid: $15 per share in cash
- Equity value: approximately $10.7 billion
- Enterprise value: approximately $33.4 billion
- Sempra decline: 2.4% over past year
The Hold Call
The “Hold” rating is notable alongside a stock trading above both its 50-day and 200-day moving averages. Analysts see limited upside, even as the technical picture looks positive.
| Metric | AES | XLU |
|---|---|---|
| Three-month change | +1.4% | -9.2% |
| 52-week change | +13.6% | -4.3% |
The Bottom Line
The company’s stock has beaten the wider utilities field, even though it still trades beneath its most recent high point. The takeover offer is still active, and the shares keep trading above both of its main moving averages.
It’s an odd combination: a stock sitting above both its 50-day and 200-day moving averages, while Wall Street’s average estimate points to “Hold,”.
Source material: “How Is AES Corporation's Stock Performance Compared to Other Utility Stocks,” Yahoo Finance.
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