Is AES Stock Underperforming the Dow?

With a market cap of $10.1 billion, The AES Corporation (AES) is a global power generation and utility company that operates across four segments: Renewables, Utilities, Energy Infrastructure, and New Energy Technologies. It generates and distributes electricity using a diverse mix of sources including solar, wind, hydro, coal, and gas, serving residential, commercial, industrial, and government customers. 

Companies valued more than $10 billion are generally considered "large-cap" stocks, and AES Corporation fits this criterion perfectly. The company operates in multiple countries and manages a generation portfolio of about 34,740 megawatts, supplying power to approximately 2.7 million customers worldwide.

Shares of the power company have declined 19.9% from its 52-week high of $17.65, reached on Feb. 27. AES' shares have risen 4.6% over the past three months, outperforming the broader Dow Jones Industrials Average ($DOWI) 4.7% decrease during the same period.

AES stock is down 1.4% on a YTD basis, a less pronounced decline than DOWI's 4.6% dip. However, shares of the company have gained nearly 9% over the past 52 weeks, slightly lagging behind DOWI’s 9.3% return over the same time frame.

The stock has been trading above its 200-day moving average since early July 2025. 

Shares of AES rose 5.8% following its Q3 2025 results on Nov. 4, 2025, largely due to strong earnings growth, with net income jumping to $517 million and adjusted EBITDA increasing to $830 million. Investor confidence was further boosted by continued momentum in renewables, including 2.9 GW completed year-to-date, a 2.2 GW addition in new PPAs, and a solid 11.1 GW backlog (5 GW under construction).

Nevertheless, rival Ameren Corporation (AEE) has outperformed AES stock. AEE stock has returned 10.2% on a YTD basis and 10% over the past 52 weeks.

Due to its weak performance, AES stock has a consensus “Hold” rating from the 10 analysts covering the stock. The mean price target of $15.67 is a premium of 10.8% to current levels.