AES (AES) closed at $20.46 in the latest trading session, marking a +0.29% move from the prior day. This move outpaced the S&P 500's daily gain of 0.19%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.08%.
Heading into today, shares of the power company had gained 7.82% over the past month, outpacing the Utilities sector's gain of 2.7% and the S&P 500's gain of 3.72% in that time.
AES will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.38, up 5.56% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.86 billion, up 9.16% from the year-ago period.
Any recent changes to analyst estimates for AES should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.39% higher. AES is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, AES is currently trading at a Forward P/E ratio of 13.97. Its industry sports an average Forward P/E of 19.59, so we one might conclude that AES is trading at a discount comparatively.
Investors should also note that AES has a PEG ratio of 1.53 right now. 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. The Utility - Electric Power industry currently had an average PEG ratio of 3.82 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% 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.
To follow AES in the coming trading sessions, be sure to utilize Zacks.com.
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