AES or IBDRY: Which Is the Better Value Stock Right Now?

Core Viewpoint - Investors in the Utility - Electric Power sector should consider AES and Iberdrola S.A. for potential value investment opportunities [1] Group 1: Zacks Rank and Earnings Outlook - AES has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Iberdrola S.A. has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that AES is likely to see a more favorable earnings outlook [3] Group 2: Valuation Metrics - AES has a forward P/E ratio of 6.36, significantly lower than Iberdrola S.A.'s forward P/E of 19.00, indicating that AES may be undervalued [5] - AES's PEG ratio is 0.57, while Iberdrola S.A. has a PEG ratio of 2.19, further suggesting that AES is a more attractive value option based on expected earnings growth [5] - AES's P/B ratio is 1.17 compared to Iberdrola S.A.'s P/B of 1.96, reinforcing the notion that AES is undervalued [6] - These valuation metrics contribute to AES receiving a Value grade of A, while Iberdrola S.A. has a Value grade of D [6] Group 3: Conclusion on Value Investment - Based on the improving earnings outlook and favorable valuation metrics, AES is positioned as the superior value option in the current market [7]