Why AES (AES) is a Top Momentum Stock for the Long-Term

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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

AES (AES)

Arlington, VA-based The AES Corporation, incorporated in 1981, is a global power company. The company’s businesses are spread across four continents in 14 countries. The company has four Strategic Business Units (SBUs) located in the United States and other regions across the globe. At the end of 2024, the company had an approximate customer base of 2.6 million. AES Corp. currently owns and/or operates a generation portfolio of 34,596 megawatts (MW), including generation from its integrated utility, AES Indiana.

AES sits at a Zacks Rank #2 (Buy), holds a Momentum Style Score of A, and has a VGM Score of B. The stock is up 0.7% and up 2.1% over the past one-week and four-week period, respectively, and AES has lost 44.6% in the last one-year period as well. Additionally, an average of 13,622,810 shares were traded over the last 20 trading sessions.

Momentum investors also pay close attention to a company's earnings. For AES, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.10 to $2.17 per share for 2025. AES boasts an average earnings surprise of 13.9%.

Investors should take the time to consider AES for their portfolios due to its solid Zacks Ranks, notable earnings metrics, and impressive Momentum and VGM Style Scores.

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The AES Corporation (AES) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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