Late last year, tech stocks lost favor with big money investors while utilities and other basics rose. Electricity company AES was among the leaders in that group. Its stock soared 29% from the end of February to its close on Tuesday. And on Wednesday AES stock's Relative Strength Rating climbed to 72, up from 66 the day before.
Another market shift is underway however, and techs like chipmaker Nvidia and Google parent Alphabet are on the rise again. The question for AES now is: Can it sustain its recent momentum amid the latest market shift?
AES: A U.S.-Based Global Power Provider
AES generates and distributes electricity to more than 2.5 million customers, and operates in various states in the U.S. and on three other continents. On its website AES says it's "the only U.S.-based global power company in the world."
The 72 RS Rating for AES stock shows that its stock price performance has topped that of 72% of all stocks over the past year. Market research shows that stocks that go on to make the biggest gains typically have an RS Rating north of 80 as they begin their largest price moves. See if AES can continue to rebound and hit that benchmark.
Among other pivotal indicators, the Arlington, Va.-based company has a 75 EPS Rating. AES stock also holds a strong 87 Composite Rating, of a best-possible 99. its SMR Rating (sales+profit margins+return on equity) is a decent 80.
And, significantly, its Accumulation/Distribution Rating is B+ on an A+ to E scale. That means that institutional investors like mutual funds and ETFs are fairly heavy buyers of AES stock. With some 70% of all trades made by big institutions, their eager participation is a bullish indicator.
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AES stock is working on a consolidation with a 29.17 entry. See if the stock can break out in volume at least 40% above average. Wednesday afternoon AES was up unchanged at 25.45, in line with overall market action.
AES last quarter reported a 6% dip in EPS year over year, to 45 cents per share. That came on the heels of 24% and then 19% growth the prior two stanzas. Sales rose 8% last quarter to $2.77 billion.
AES stock has the No. 6 rank among its peers in the Utility-Electric Power industry group. Pampa Energia and American Electric Power are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This exclusive rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
