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Why AES (AES) is a Top Value Stock for the Long-Term

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

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AES (AES)

Arlington, VA-based The AES Corporation, incorporated in 1981, is a global power company. The company’s businesses are spread across four continents in 14 countries. The company has four Strategic Business Units (SBUs) located in the United States and other regions across the globe. At the end of 2022, the company had a customer base of 2.6 million. AES Corp. currently owns and/or operates a generation portfolio of 32,326 MW, including generation from its integrated utility, IPL.

AES boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of AES are trading at a forward earnings multiple of 11.9X, as well as a PEG Ratio of 1.4, a Price/Cash Flow ratio of 5.3X, and a Price/Sales ratio of 1.1X.

Many value investors pay close attention to a company's earnings as well. For AES, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $1.73 per share for 2023. Per share AES boasts an average earnings surprise of 6.1%.

AES should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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The AES Corporation (AES) : Free Stock Analysis Report

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Zacks Investment Research