Arlington, Virginia-based The AES Corporation (AES) operates as a diversified power generation and utility company. With a market cap of $7.2 billion, the company acquires, develops, owns, and operates renewable energy power plants. 

Shares of this clean energy giant have significantly underperformed the broader market over the past year. AES has declined 46.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 12.3%. In 2025, AES stock is down 20.9%, compared to the SPX’s 3.3% dip on a YTD basis.

Narrowing the focus, AES’ underperformance is also apparent compared to the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained about 17.5% over the past year. Moreover, the ETF’s 5.4% gains on a YTD basis outshine the stock’s double-digit losses over the same time frame.

On May 1, AES shares closed down marginally after reporting its Q1 results. Its adjusted EPS of $0.27 did not meet Wall Street expectations of $0.37. The company’s revenue was $2.9 billion, missing Wall Street forecasts of $3.2 billion. 

For the current fiscal year, ending in December, analysts expect AES’ EPS to grow marginally to $2.16 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion. 

Among the 11 analysts covering AES stock, the consensus is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, three “Holds,” and one “Strong Sell.”

This configuration is less bullish than a month ago, with eight analysts suggesting a “Strong Buy.”

On Apr. 25, Bank of America Securities analyst Dimple Gosai maintained a “Hold” rating on AES with a price target of $13, implying a potential upside of 27.7% from current levels.

The mean price target of $14.45 represents a 41.9% premium to AES’ current price levels. The Street-high price target of $23 suggests an ambitious upside potential of 125.9%.