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Here's Why You Should Add AES Corp (AES) in Your Portfolio

Zacks Equity Research

The AES Corporation’s AES inclination toward preserving financial flexibility by reducing costs, growing partnerships and focusing on renewables is likely to be a growth catalyst.

Let’s discuss the factors that make the company an appropriate investment option at the moment.

Zacks Rank & VGM Score

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AES Corp has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.

Price Performance

In the past month, the company’s shares have gained 34% compared with the industry’s growth of 18.6%.



Growth Projections

The Zacks Consensus Estimate for 2020 earnings is pegged at $1.42 cents per share on revenues of $10.59 billion. This indicates 4.41% and 3.95% increase of the bottom and the top line, respectively, from the year-ago period’s reported figures.

The company’s long-term (three to five years) earnings growth is pegged at 7.70%.

Dividend Yield & Return on Equity (ROE)

Currently, the company has a dividend yield of 3.89% compared with the Zacks S&P 500 composite’s 2.18% and the industry’s 3.16%

ROE is a measure of a company’s efficiency in utilizing shareholder’s funds. ROE for the trailing 12 months for the company is 22.82% compared with the industry’s ROE of 9.80% and Zacks S&P 500 composite’s 16.74%.

Other Key Picks

Some other top-ranked stocks from the same industry are NorthWestern Corporation NWE, Pacific Gas & Electric Co. PCG and Southern Company SO. NorthWestern sports a Zacks Rank #1, while Pacific Gas & Electric and Southern Company carry a Zacks Rank #2.

Long-term earnings growth of Pacific Gas & Electric, NorthWestern and Southern Company is pegged at 2.50%, 3.30% and 4 %, respectively.

Pacific Gas & Electric, NorthWestern and Southern Company have trailing four-quarter positive earnings surprise of 7.35%, 7.62% and 8.13%, on average, respectively.

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The AES Corporation (AES) : Free Stock Analysis Report
 
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