In the latest trading session, AES (AES) closed at $20.56, marking a +0.78% move from the previous day. This change outpaced the S&P 500's 0.11% gain on the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq added 0.2%.
Coming into today, shares of the power company had gained 3.24% in the past month. In that same time, the Utilities sector gained 3.82%, while the S&P 500 gained 3.25%.
AES will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.33, down 8.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.77 billion, up 5.83% from the year-ago period.
Investors should also note any recent changes to analyst estimates for AES. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.45% lower within the past month. AES currently has a Zacks Rank of #3 (Hold).
Digging into valuation, AES currently has a Forward P/E ratio of 13.97. This valuation marks a discount compared to its industry's average Forward P/E of 20.13.
We can also see that AES currently has a PEG ratio of 1.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Utility - Electric Power stocks are, on average, holding a PEG ratio of 4.06 based on yesterday's closing prices.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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