Why The AES Corporation (AES) Went Up on Monday

We recently compiled a list of the 10 Firms Buck Market Bloodbath on Monday. In this article, we are going to take a look at where The AES Corporation (NYSE:AES) stands against the other stocks.

The stock market suffered a bloodbath anew on Monday, with the Nasdaq plunging to its worst level in three years over concerns about the health of the US economy after the Trump administration acknowledged the possibility of a potential rough patch.

The tech-heavy Nasdaq fell the heaviest, down 4 percent, followed by the S&P 500, which declined by 2.7 percent. The Dow Jones, for its part, dropped by 2.08 percent.

Meanwhile, 10 companies managed to book modest gains, bucking the broader market caution. We have identified the names that led the charge and detailed the reasons behind their performance.

To come up with the list, we considered only the stocks with $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 The AES Corporation (NYSE:AES) grew its share prices by 4.71 percent on Monday to end at $11.78 each as investor sentiment was buoyed by bullish analysts’ outlooks for the company.

Last week, Bank of America upgraded AES’ rating to “neutral” from “underperform” previously, 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 that risks for The AES Corporation (NYSE:AES) remain regarding asset sales and funding constraints.

Meanwhile, Mad Money host Jim Cramer earlier suggested it was “time to pick up” The AES Corporation (NYSE:AES) stock.

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

Earlier, The AES Corporation (NYSE: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 6th on our list of Monday’s top gainers. 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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

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