Why The AES Corporation (AES) Surged On Thursday?

We recently published a list of These 10 Stocks Defied Thursday’s Slump. In this article, we are going to take a look at where The AES Corporation (NYSE:AES) stands against other stocks that defied Thursday’s slump.

The stock market ended in the red territory anew on Thursday following a fresh wave of uncertainties and reports of a looming government shutdown that rattled investors.

The Dow Jones dropped by 1.30 percent, while the S&P 500 and Nasdaq declined by 1.39 percent and 1.96 percent, respectively.

Meanwhile, investors took refuge in 10 companies, predominantly mining firms, to mitigate the risks from the macroeconomic threats.

In this article, we have listed the 10 strongest stocks and detailed the reasons behind their performance.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in trading volume.

An executive in a power plant control booth overseeing the efficient energy production.

The AES Corporation (NYSE:AES)

The AES Corp. rose by 3.80 percent on Thursday to end at $12.28 apiece as investor confidence continued, thanks to bullish analyst outlooks for the company.

Earlier, Mad Money host Jim Cramer suggested in his show that it was already time to pick up shares in AES.

“What is that, 5 percent yield? It’s down way too low. I think it’s time to pick up that utility,” he said.

Last week, Bank of America also upgraded AES’ rating to “neutral” from “underperform” previously, while raising its price target to $13 from $11.

The bank said AES’ revised strategy, which involves capital spending cuts and a more achievable renewables growth target, improves its execution visibility. However, Bank of America underscored risks for AES regarding asset sales and funding constraints.

Earlier, AES announced that it would expand its renewable energy capacity by bringing more than 3 GW of renewable energy online in 2025.

Overall, AES ranks 8th on our list of stocks that defied Thursday’s slump. While we acknowledge the potential of AES as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AES but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.