AES stock touches 52-week low at $9.56 amid market challenges

Published 22/05/2025, 14:38
AES stock touches 52-week low at $9.56 amid market challenges

AES (NYSE:AES) Corporation’s stock has reached a 52-week low, dipping to $9.56, as the energy company grapples with a challenging market environment. According to InvestingPro analysis, the company currently trades at an attractive P/E ratio of 5.6x while offering a substantial 7% dividend yield, though it operates with significant debt levels at 72% of total capital. This latest price level reflects a significant downturn from the previous year, with AES Corp experiencing a 1-year change of -52.33%. Investors are closely monitoring the stock as it navigates through the pressures of fluctuating energy prices, regulatory hurdles, and the global transition towards renewable energy sources. The company’s performance and strategic decisions in the coming months will be critical as it seeks to recover and potentially rebound from this low point. With annual revenue of $12.1 billion and current trading levels below InvestingPro’s Fair Value estimate, AES presents an interesting case for value investors. For deeper insights, including 10 additional ProTips and comprehensive valuation metrics, explore the full InvestingPro analysis.

In other recent news, AES Corporation reported its first-quarter 2025 earnings, revealing an adjusted EPS of $0.27, which fell short of the forecasted $0.49. Revenue also missed expectations, coming in at $2.93 billion against a projected $3.16 billion. Despite these misses, AES reaffirmed its guidance for 2025, projecting adjusted EPS between $2.10 and $2.26. Additionally, AES has secured two long-term Power Purchase Agreements with Meta (NASDAQ:META), totaling 650 megawatts of solar projects aimed at powering Meta’s data centers. These projects are expected to generate renewable energy and significant economic benefits for local communities in Texas and Kansas. In a separate development, Jefferies downgraded AES Corp stock from Hold to Underperform, lowering the price target to $9.00, citing concerns about the company’s renewable sector outlook and current valuation. Despite these challenges, AES continues to focus on strategic growth initiatives in the renewable energy sector, aiming to sign 4 GW of PPAs in 2025.

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