10 Worst Performing Utilities Stocks to Buy According to Analysts

4) The AES Corporation (NYSE:AES)

% Decline Over Past Year: ~34.6%

Average Upside Potential: ~44.4%

Number of Hedge Fund Holders: 53

The AES Corporation (NYSE:AES) operates as a diversified power generation and utility company in the US and internationally. The company’s transition towards renewables remains in line with the global trends favoring clean energy solutions. It has been leveraging its current expertise in power generation in a bid to capitalize on the ever-growing demand for sustainable energy sources. Also, The AES Corporation (NYSE:AES)’s diversification throughout different energy sectors offers a degree of stability during market fluctuations.

With governments and corporations prioritizing clean energy solutions to cater to climate change, the company’s strategic focus on expanding renewable capacity might fuel significant long-term growth. The AES Corporation (NYSE:AES)’s diversified portfolio, including utilities, energy infrastructure, and new energy technologies together with renewables, offers a solid foundation for growth. Its asset sales program can improve the company’s financial position and aid its strategic transition to renewable energy.

Notably, while announcing Q3 2024 results, The AES Corporation (NYSE:AES) mentioned that it has announced or closed transactions for roughly three-quarters of its $3.5 billion asset sale proceeds target through 2027. Its PPA backlog, which consists of projects with signed contracts, but which are not yet operational, stood at 12.7 GW, including 4.0 GW under construction.