Is AES Corporation Stock Underperforming the Nasdaq?

Core Insights - AES Corporation is a significant player in the global energy sector, with a market capitalization of $9.9 billion and a diversified portfolio in power generation and utilities [1][2] - The company operates over 32,000 megawatts of global installed capacity and is involved in regulated utilities, energy infrastructure, renewable energy development, and emerging technologies [2] - AES has experienced a stock pullback, trading 12.2% below its 52-week high, but has shown improved momentum recently, climbing 7.2% over the past three months [3] Financial Performance - In Q3 2025, AES reported revenue of $3.4 billion and adjusted EPS of $0.75, both exceeding market expectations [5] - The company achieved an 18.9% year-over-year increase in adjusted EBITDA to approximately $830 million, driven by strong performance in its renewable portfolio and improved margins in U.S. utility operations [5] - AES reaffirmed its full-year 2025 guidance, which bolstered investor confidence in its earnings trajectory and clean-energy transition strategy [5] Market Position - AES is categorized as a mid-cap stock, indicating its meaningful scale and influence within the diversified utilities sector [2] - Year-to-date, AES is up 5.8%, lagging behind the Nasdaq Composite's 19.7% gain, and has delivered a modest 3.6% return over the past 52 weeks compared to the index's 14.6% rise [4] - Technically, the stock has maintained above its 200-day moving average since early July but fell below its 50-day moving average last month [4]