Core Viewpoint - The AES Corporation is expected to report strong fourth-quarter 2025 results, with earnings projected to grow by 14.81% year-over-year and revenues by 17.83% [1][6]. Earnings Estimates - The Zacks Consensus Estimate for Q4 2025 earnings is 62 cents per share, with a revenue estimate of $3.49 billion [1][2]. - Year-over-year growth estimates for earnings and revenues are 14.81% and 17.83%, respectively [1][6]. Earnings Surprise History - AES has a mixed earnings surprise history, beating estimates in two of the last four quarters, with an average surprise of 14.68% [3][4]. Factors Influencing Performance - Strategic investments in infrastructure modernization and grid resilience are expected to enhance operational efficiency and reliability [9]. - Increased electricity demand from data centers, driven by AI workloads, is anticipated to support quarterly earnings [10]. - Favorable rate outcomes and new projects contributing revenue are also expected to positively impact performance [10]. Stock Performance - AES shares have increased by 17.7% over the past three months, outperforming the industry growth of 3.2% [12]. - The company is currently trading at a discount compared to its industry on a forward P/E basis [13]. Return on Equity - AES has a trailing 12-month return on equity of 18.83%, which is higher than the industry average of 10.7% [14]. Investment Thesis - The company is strategically investing in clean energy solutions, positioning itself for long-term growth opportunities [17]. - AES is benefiting from the growing demand from data centers, securing long-term contracts through renewable energy projects [18]. - The decline in wholesale electricity prices due to increased renewable penetration may pose challenges to financial performance [19]. Conclusion - AES is leading the utility industry's transition to clean energy, focusing on sustainable growth and innovation [20]. Given its earnings growth projection, strong ROE, and discounted valuation, it may be an attractive option for new investors [20].

Group 1 - AES Corp has signed agreements to provide energy generation for a new Google data center planned in Wilbarger County, Texas [1] - The agreements signify a strategic partnership between AES Corp and Google, focusing on energy supply for data center operations [1] Group 2 - The news reflects ongoing trends in the energy sector, particularly the increasing demand for sustainable energy solutions from major tech companies [1] - This development may indicate a broader shift towards renewable energy investments in the data center industry [1]

Google and AES Sign 20-year PPAs for Co-Located Generation ARLINGTON, Va., Feb. 24, 2026 /PRNewswire/ -- The AES Corporation (NYSE: AES) today announced agreements for energy generation that will be co-located with a new Google data center in Wilbarger County, Texas. ...

Core Insights - AES Corporation has achieved a total return of approximately 27% since the Buy call in August of the previous year, attributed to a visible EBITDA recovery and a rerating influenced by the renewables and data sectors [1]. Company Performance - The total return of AES Corporation reflects a significant recovery in EBITDA, indicating improved operational performance [1]. - The rerating of the company is driven by trends in renewable energy and data, suggesting a positive market sentiment towards these sectors [1]. Analyst Background - The analysis is conducted by a stock analyst with over 20 years of experience in quantitative research, financial modeling, and risk management, focusing on equity valuation and market trends [1]. - The analyst has a background as a former Vice President at Barclays, leading teams in model validation and regulatory finance, which contributes to a deep expertise in both fundamental and technical analysis [1].

AES Recognized by BNEF as Top Provider of Clean Energy to Corporations in the US and the Americas in 2025 [Accessibility Statement] Skip NavigationRanked as a Leading Seller to Corporations for the Fifth Consecutive YearARLINGTON, Va., Feb. 19, 2026 /PRNewswire/ -- The AES Corporation (NYSE: AES) has been ranked as the top seller of clean energy to corporations in the United States and the Americas in 2025, according to BloombergNEF's (BNEF) Corporate Energy Market Outlook. This marks the fifth consecutive ...

Market Overview - U.S. equities ended modestly higher, with the S&P 500 up 0.10% to 6,843.22, Nasdaq Composite up 0.14% to 22,578.38, and Dow Jones Industrial Average gaining 0.07% to 49,533.19, indicating a recovery from early-session weakness [1][2] Shift in Investor Focus - There is a notable shift in investor focus towards value stocks, which are often trading below their intrinsic value and offer a safety margin [2] Value Stock Evaluation - The Price to Cash Flow (P/CF) ratio is highlighted as an effective valuation metric for assessing value stocks, with companies like Harmony Biosciences Holdings, Tripadvisor, AES Corporation, and Concentrix Corporation showing low P/CF ratios [3][4] Financial Health Indicators - Positive cash flow is crucial as it indicates an increase in a company's liquid assets, allowing for debt settlement, expense management, reinvestment, and shareholder-friendly actions [6] Value Investing Strategy - A comprehensive investment strategy should include multiple metrics such as price-to-book ratio, price-to-earnings ratio, and price-to-sales ratio, along with a favorable Zacks Rank and Value Score to avoid value traps [7][11] Parameters for True-Value Stocks - Key parameters for selecting true-value stocks include P/CF less than or equal to industry median, price greater than or equal to $5, and average 20-day volume greater than 100,000 [8][10] Highlighted Value Stocks - Harmony Biosciences shows strong growth estimates with 21.4% sales and 25.9% EPS growth, while AES and Concentrix have posted earnings surprises and maintain strong Value Scores [9][14][16] Company Performance - Harmony Biosciences has a trailing four-quarter earnings surprise of 7.2% and a Value Score of A, with shares rising 4.6% in the past year [13][14] - Tripadvisor has a trailing four-quarter earnings surprise of 32.1%, with sales and EPS growth estimates of 2.6% and 44.1%, respectively, but shares have fallen 40.4% in the past year [15] - AES Corporation has a trailing four-quarter earnings surprise of 14.7%, with sales and EPS growth estimates of 3% and 0.9%, respectively, and shares have advanced 57.6% in the past year [16] - Concentrix Corporation has a trailing four-quarter earnings surprise of 1%, with sales and EPS growth estimates of 2.9% and 4.8%, respectively, but shares have declined 33.5% in the past year [17]

Core Insights - The price-to-book (P/B) ratio is a key metric for evaluating stock value, calculated by dividing the stock's current price by its book value per share [1][2] - The P/B ratio is gaining traction as a tool for identifying low-priced stocks with high-growth potential, alongside traditional metrics like price-to-earnings (P/E) and price-to-sales (P/S) [2][3] Understanding Book Value - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities [4] - It is calculated by subtracting total liabilities from total assets, often equating to common stockholders' equity [5] P/B Ratio Analysis - A P/B ratio of less than one indicates that a stock is undervalued, while a ratio greater than one suggests it may be overvalued [6][7] - The P/B ratio should be compared within industries for more accurate assessments [6] - Limitations exist for the P/B ratio, particularly for companies with significant R&D expenditures or high debt levels [9] Investment Opportunities - Five stocks identified with low P/B ratios and strong growth prospects include AES Corporation, Harmony Biosciences, Concentrix, Patria Investments Limited, and Global Payments [3][10] - AES has a projected 3-5 year EPS growth of 11.2% and a Value Score of A [10][16] - Harmony Biosciences boasts a Zacks Rank of 1 and a projected EPS growth of 27.11% [10][17] - Concentrix has a projected EPS growth of 8.76% and a Value Score of A [17] - Patria Investments Limited has a projected EPS growth of 15.76% and a Zacks Rank of 2 [18] - Global Payments has a projected EPS growth of 11.54% and a Zacks Rank of 2 [19]

Industry Overview - Renewable energy is increasingly recognized for its significant role in combating climate change, with wind power leading the transition toward renewables [1] - Wind energy has become one of the largest renewable sources of electricity generation in the United States, driven by abundant supply, sustainable technology, and lower production costs [2] Market Growth - The U.S. wind power capacity reached over 159 gigawatts (GW) by the end of 2025, accounting for nearly 11% of total utility-scale electricity generation [3][10] - The U.S. grid is projected to add 11.7 GW of wind generation capacity in 2025, reflecting an increase from around 6 GW added in the previous year [4] Future Projections - Wind power generation is expected to increase by approximately 6% in 2026 and 7% in 2027, supported by new capacity additions [4][10] Key Projects - Major upcoming wind projects include the 800-megawatt (MW) Vineyard Wind 1 in Massachusetts and the 715-MW Revolution Wind project in Rhode Island [5] Investment Opportunities - Leading wind energy companies such as Consolidated Edison, Pinnacle West Capital, AES Corporation, and Portland General Electric present compelling investment opportunities due to their strong market positions and growth potential [6] - Consolidated Edison is building the Brooklyn Clean Energy Hub, expected to accommodate up to 1,500 MW of electricity by 2028 [9] - Pinnacle West Capital has a capital investment plan of $8 billion for 2026-2028 and added 500 MW of wind power capacity in 2025 [12][13] - AES Corporation is making strategic investments in clean energy solutions and plans to add up to 1,300 MW of wind, solar, and battery energy storage by 2027 [15][17] - Portland General Electric is expanding its renewable portfolio and focusing on projects related to upgrades across its transmission and distribution systems [18][20]

Core Viewpoint - AES is currently viewed as a superior value opportunity compared to NextEra Energy based on various valuation metrics [7] Valuation Metrics - AES has a forward P/E ratio of 6.65, significantly lower than NEE's forward P/E of 22.36 [5] - AES's PEG ratio stands at 0.60, while NEE's PEG ratio is 2.77, indicating AES's better valuation relative to its expected earnings growth [5] - AES has a P/B ratio of 1.36 compared to NEE's P/B of 2.8, further supporting AES's position as a more attractive investment [6] Earnings Outlook - Both AES and NEE hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - The Zacks Rank strategy targets companies with improving earnings estimates, which applies to both AES and NEE [2]

Core Insights - Investors are particularly attracted to dividend stocks, especially those with high yields, due to their ability to provide a significant income stream and substantial total return potential [1]