7 Stocks on Jim Cramer’s Radar

3. The AES Corporation (NYSE:AES)

Number of Hedge Fund Holders: 47

When asked about The AES Corporation (NYSE:AES) by a caller, Cramer remarked, “What is that, 5% yield? It’s down way too low. I think it’s time to pick up that utility.”

AES Corporation (NYSE:AES) is a diversified power generation and utility company that owns and operates power plants and utilities, using various fuels and technologies to generate and sell electricity. During Q3 2024, the company secured long-term contracts for 2.2 gigawatts of renewables and new data center load growth within its U.S. utilities. During this period, it also completed the construction of 1.2 GW worth of new projects, as reported by AES President and CEO, Andrés Gluski.

Additionally, the company made significant progress toward its asset sale target, closing or announcing transactions for nearly three-quarters of the $3.5 billion in asset sales it plans to complete by 2027. The company reaffirmed its 2024 guidance for adjusted EBITDA in the range of $2.6 to $2.9 billion, although it noted that it would likely be toward the lower end of this range due to the impact of extreme weather in Colombia and reduced margins in its Energy Infrastructure segment.

Despite this, AES Corporation (NYSE:AES) maintained its annualized growth target for adjusted EPS, expecting a 7% to 9% increase through 2025, based on a 2020 base year. The company also reiterated its growth target for adjusted EPS from 2023 guidance of $1.65 to $1.75, projecting a 7% to 9% increase annually through 2027.