Latest news with #AESCorp
Forbes
6 days ago
- Business
- Forbes
What's Behind The 20% Jump In AES Stock?
Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images) AES Corp.(NYSE:AES) is not usually a stock that makes headlines for significant price fluctuations, but investors were startled this week when it increased almost 20% in just one session on Wednesday. So, what is the reason for this sudden interest? It all comes down to discussions of a potential acquisition. As per reports from Bloomberg and other outlets, AES is reportedly considering strategic alternatives, including a possible sale of the company. Such news typically captures investors' attention—particularly when major players like Blackstone, Brookfield, and BlackRock's infrastructure division are speculated to be involved. While AES stock has experienced volatility, if you're looking for upside with less risk than individual stocks, the Trefis High Quality portfolio offers an alternative – having outperformed the S&P 500 and achieved returns exceeding 91% since its inception. However, this is not solely about merger and acquisition speculation. AES has a significant role in the clean energy transition, providing renewable energy to major tech firms such as Microsoft, Amazon, and Meta. With the demand for energy from AI data centers and cloud computing soaring, AES's assets appear much more valuable. Despite recently encountering challenges—like reduced subsidies for renewable initiatives due to changing U.S. policies—the long-term demand narrative remains strong. In essence, merger chatter + AI-driven energy demand = investor enthusiasm. Regardless of whether the buyout rumors materialize or not, AES has just reminded the market that it might deserve a closer examination. Not fond of the unpredictable nature of AES stock? The Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, has demonstrated a history of comfortably outperforming the S&P 500 over the last four years. What is the reason for this? Collectively, HQ Portfolio stocks have offered superior returns with less risk when compared to the benchmark index; a smoother experience, as shown in HQ Portfolio performance metrics. Invest with Trefis Market-Beating Portfolios Explore all Trefis Price Estimates
Yahoo
09-07-2025
- Business
- Yahoo
S&P 500 Gains and Losses Today: Index Climbs as Nvidia Breaks Records
The S&P 500 rose 0.6% on Wednesday, July 9, 2025, as Nvidia's stock hit an all-time high and crossed a major market cap milestone. Shares of power utility AES Corp. took off following reports of takeover interest from several major infrastructure investors. Hershey named a new CEO, and shares of the confectioner U.S. equities indexes rose Wednesday as AI chipmaker Nvidia (NVDA) became the first company in the world to reach a $4 trillion market capitalization and President Trump released letters to more trading partners outlining tariff rates set to take effect on Aug. 1. The S&P 500 advanced 0.6%, closing just shy of a new record. The Dow ended the midweek session up 0.5%, while outperformance from the tech sector helped the Nasdaq climbed 0.9% to a record closing high. Shares of AES Corp. (AES) skyrocketed 19.8%, leading gains on the S&P 500 following reports that the power generator is exploring a sale. Several major infrastructure investors including BlackRock's (BLK) Global Infrastructure Partners unit have been evaluating an acquisition of AES amid declines in its share price over the past few years, Bloomberg reported. AES generates energy from a variety of sources, including hydro, wind, and solar, and has signed agreements with multiple tech firms to provide renewable energy for data centers. Reports of a potential takeover bid also helped lift shares of engineering design software firm PTC Inc. (PTC), which surged 17.7%. Bloomberg indicated that rival Autodesk (ADSK), which competes with PTC in the computer-aided design and product lifecycle management markets, is evaluating a potential acquisition. Autodesk shares slipped 2.4%. Major cryptocurrencies moved higher, with the price of Bitcoin hitting a record high around $112,000 amid optimism about a crypto-friendly regulatory environment in the U.S. under the Trump administration. Shares of Coinbase Global (COIN), operator of the largest crypto exchange in the U.S., advanced 5.4%, adding to a string of recent gains leaving the stock up over 50% since the start of the year. Newly released minutes from the latest Federal Open Market Committee meeting showed that policymakers believe tariff-related inflationary pressure will be moderate and still anticipate interest-rate cuts in 2025. The projection for potential Fed rate cuts and the likelihood of lower mortgage rates helped lift housing-related stocks. D.R. Horton (DHI) shares gained 5.4% Shares of fellow home builders Lennar (LEN) and PulteGroup (PHM), as well as shares of residential construction supplier Builders FirstSource (BLDR), all added around 4.5%. Boeing (BA) shares climbed 3.7%, a day after the company reported it delivered 150 commercial jets in the second quarter, up from 92 in the year-ago period and ahead of analysts' forecasts. The aviation giant also topped expectations for quarterly deliveries of helicopters and jets in its defense segment. Shares of data analytics firm Fair Isaac (FICO) logged the weakest performance in the S&P 500 for the second straight session, dropping 6.5% Wednesday. The two-day slide came after Bill Pulte, director of the Federal Housing Finance Agency, indicated that lenders will be able to evaluate the creditworthiness of mortgage borrowers using the VantageScore system, a competitor to Fair Isaac's FICO credit scores. Hershey (HSY) shares fell 4.7% after the chocolate maker named a new CEO. The confectionery company announced that Kirk Tanner, who currently serves as the top executive for fast-food giant Wendy's (WEN), will take the helm at Hershey starting next month. Tanner is slated to replace retiring Hershey CEO Michele Buck. Rothschild & Co Redburn analysts downgraded Monster Beverage (MNST) stock to "neutral" from "buy," suggesting that tariffs on aluminum imports could weigh on the performance of the energy drink maker. Monster Beverage shares sank 3.3%. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
09-07-2025
- Business
- Bloomberg
Deal Roundup: AES, Starbucks China and Kuwait BofA Stake
Isabelle Lee reports on AES Corp. exploring options including a potential sale, Starbucks receiving proposals from prospective investors in its China business and Kuwait Investment Authority selling a $3.1 billion stake in Bank of America. (Source: Bloomberg)
Yahoo
09-07-2025
- Business
- Yahoo
Deal Roundup: AES, Starbucks China and Kuwait BofA Stake
Isabelle Lee reports on AES Corp. exploring options including a potential sale, Starbucks receiving proposals from prospective investors in its China business and Kuwait Investment Authority selling a $3.1 billion stake in Bank of America.
Forbes
09-07-2025
- Business
- Forbes
Buy or Sell AES Stock At $12?
CANADA - 2025/05/04: In this photo illustration, the AES Corporation logo is seen displayed on a ... More smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) AES Corp, (NYSE:AES), a utility and power generation company based in the United States, is reportedly evaluating a possible sale following indications of interest in a takeover, as stated by Bloomberg. This announcement led to AES shares surging by as much as 13% during premarket trading on Wednesday, July 9. AES has a varied portfolio of renewable energy assets, which includes both wind and solar farms, along with managing two utilities in Indiana and Ohio. The company has concentrated on providing renewable energy to data center operators, securing partnerships with major tech companies such as Google and Amazon. Although the potential sale news may capture the attention of investors, AES stock continues to be significantly lower, trading at 45% under its 52-week high of about $20. Despite what seems to be a low valuation, we don't consider AES a compelling investment. Our evaluation is grounded in a thorough analysis comparing AES's current valuation with its recent operational performance and both its historical and current financial health. Our review of essential metrics—Growth, Profitability, Financial Stability, and Downturn Resilience—indicates that AES shows very weak operating performance and financial status. Nevertheless, if you're looking for upside with lower volatility than individual stocks, the Trefis High Quality portfolio could be a viable alternative — having outperformed the S&P 500 and achieved returns surpassing 91% since its launch. How Does AES's Valuation Compare to The S&P 500? When considering the price you pay per dollar of sales or profit, AES stock appears inexpensive in comparison to the broader market. How Have AES's Revenues Performed Recently? AES's revenues have experienced a decline in recent years. How Profitable Is AES? AES's profit margins are approximately at the median level for companies in the Trefis coverage universe. How Stable is AES Financially? AES's balance sheet appears very weak. How Does AES Stock Perform During Economic Downturns? AES stock has performed significantly worse than the benchmark S&P 500 index during several recent downturns. While investors are hopeful for a soft landing for the U.S. economy, how severe could the impact be if another recession occurs? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and after the last six market crashes. Putting All The Pieces Together: What It Means For AES Stock In conclusion, AES's performance in the parameters outlined above can be summarized as follows: Overall, AES has underperformed significantly in key financial and operational metrics, rendering it an unattractive investment despite its currently low valuation. Certainly, our assessment could be mistaken, and a potential takeover could enhance shareholder value and entice investors. However, considerable risks remain, and our analysis recommends caution. While it's advisable to avoid AES stock for the time being, you may want to consider the Trefis Reinforced Value (RV) Portfolio, which has outperformed its benchmark of all-cap stocks (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices)to generate strong returns for investors. What is the reason? The quarterly rebalanced composition of large-, mid-, and small-cap RV Portfolio stocks offered an adaptive approach to capitalize on favorable market conditions while minimizing losses during downturns, as detailed in RV Portfolio performance metrics.
