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AES Corp’s Stock Sees Positive Momentum After Argus Upgrade

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Ellis Hobbs Fact-checked by Matt Monaco
Updated 1/2/2026, 4:40 pm ET 1/2/2026, 4:40 pm ET | 5 min 5 min read
AES Corp’s Stock Sees Positive Momentum After Argus Upgrade Thumbnail

The AES Corporation stocks have been trading up by 3.31 percent after unveiling a strategic energy collaboration.

Utilities industry expert:

Analyst sentiment – positive

AES Corporation (AES) is positioned solidly in the Utilities sector with a focus on energy solutions, supported by robust financial metrics. With an EBIT margin of 17.1% and an EBITDA margin of 28.7%, AES demonstrates strong operational efficiency, although its pretax profit margin is slim at 1.5%. The company’s revenue generation is impressive at $12.3 billion, translating into a revenue per share of $17.24, indicating a solid revenue base. Valuation metrics show a lower Price-to-Sales ratio of 0.82 and a Price-to-Earnings ratio of 8.75, reflecting a potentially undervalued stock. However, a concerning leverage ratio of 13.1 and a low current ratio of 0.7 signal liquidity and debt challenges. AES’s return on capital figures, with ROIC at 144.13% for the year, underscoring exceptional capital utilization, are juxtaposed against negative free cash flow of $511 million, indicating operational strain primarily due to significant capital expenditures.

Technically, AES exhibits a bullish trend in its recent weekly price movements, closing at $14.8148 after opening the week at $14.13, representing a steady uptrend over several sessions. The stock’s support is evident around the $14.13 level, with a recent high of $14.85 acting as immediate resistance. Volume trends support this upward movement, suggesting strong interest and accumulation at current levels. The near-term strategy recommends a buy position as the stock has closed above resistance, indicating potential for continuation higher toward the target of $18. Vigilant investors should monitor the $14.5 level as a critical pivot zone for stop-loss or consolidation.

Recent developments bolster a positive outlook for AES. The company received a bullish upgrade from Argus to a buy rating, with the price target elevated to $18, driven by growth potential in its Renewables segment. Such advancements align with broader industry trends emphasizing sustainable energy solutions, likely catalyzing investor sentiment favorably. Analysts’ mean price target of $15.59 and AES’s attractive dividend yield further enhance its appeal in comparison to its Utilities peers. Despite this optimism, AES must navigate significant debt and free cash flow pressures. However, with planned portfolio expansions, the path toward sustainable earnings growth remains positive. AES’s visibility in the market is expected to improve, warranting a constructive stance with immediate support at $14.13 and potential upside resistance at $18.

Candlestick Chart

Weekly Update Dec 29 – Jan 02, 2026: On Friday, January 02, 2026 The AES Corporation stock [NYSE: AES] is trending up by 3.31%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

The latest financial analysis indicates that AES Corporation is on a positive trajectory, particularly with its integration of sustainable solutions in the energy sector. The company’s revenue stands at approximately $12.278B, indicating robust growth with a 2.14% revenue hike over three years and 4.88% over the past five years. Key profitability ratios show an ebit margin of 17.1% and a pretax profit margin of 1.5%, showcasing effective cost management.

The stock’s recent movements, with an ascending pattern observed from $14.13 rising consistently to $14.8148, corroborate the upward trading sentiment. Short-term intraday movements, however, display periodic fluctuations, highlighting the volatile nature of energy stocks. Despite these fluctuations, long-term growth potential in the renewables segment remains a key factor driving investor confidence.

Financial documents highlight the company’s strategic cash flows with sound cash and cash equivalents at $1.758B, despite substantial capital expenditures reflecting investment in infrastructure. With an enterprise value of $42.17B and a Price to Earnings (PE) ratio of 8.75, AES appears to be undervalued, presenting possible upward room for the stock. As dividend payouts remain attractive, the firm reinforces shareholder value, underpinned by strong sector fundamentals and upward analyst revisions.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”