AES Corp (AES): Today's Featured Utilities Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

AES ( AES) pushed the Utilities sector higher today making it today's featured utilities winner. The sector as a whole closed the day up 0.3%. By the end of trading, AES rose 13 cents (1.3%) to $10.10 on light volume. Throughout the day, 2.9 million shares of AES exchanged hands as compared to its average daily volume of 5.7 million shares. The stock ranged in a price between $10.02-$10.18 after having opened the day at $10.13 as compared to the previous trading day's close of $9.97. Other companies within the Utilities sector that increased today were: Basic Sanitation Company of the State of Sa ( SBS), up 8.2%, Empresa Distribuidora y Comercializadora No ( EDN), up 7.8%, Energy Company of Minas Gerais ( CIG), up 7.4%, and Cadiz ( CDZI), up 4.8%.
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The AES Corporation, a power company, operates a portfolio of electricity generation and distribution businesses. Its Generation business owns and/or operates power plants to generate and sell power to wholesale customers, such as utilities and other intermediaries. AES has a market cap of $7.42 billion and is part of the utilities industry. The company has a P/E ratio of -7.2, below the S&P 500 P/E ratio of 17.7. Shares are down 15.8% year to date as of the close of trading on Wednesday. Currently there are five analysts that rate AES a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates AES as a hold. Among the primary strengths of the company is its revenue growth. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the utilities sector could consider Utilities Select Sector SPDR ( XLU) while those bearish on the utilities sector could consider ProShares UltraShort Utilities ( SDP).

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