We recently compiled a list of 10 Cheap Utility Stocks to Buy According to Hedge Funds. The AES Corporation stands second on our list.
The AES Corporation (NYSE:AES), a global power and utility company, is advancing its clean energy initiatives while exploring strategic options amid rising investor interest. The company operates internationally with a strong focus on renewables, including solar, wind, energy storage, and green hydrogen. Long-term power purchase agreements with major clients like Microsoft and Meta further strengthen its clean energy portfolio, with several large-scale projects in regions such as Texas and Kansas nearing completion in 2025.
The corporation is set to report its Q2 2025 earnings on July 31. Despite facing weather-related outages and increased restoration costs, the company benefits from growing energy demand driven by rapid data center expansion and favorable rate outcomes in previous quarters. These trends are expected to support continued revenue growth.
In early July 2025, The AES Corporation (NYSE:AES) shares rose over 9% following reports that the company is exploring a potential sale or other strategic alternatives. Interest from major firms like Brookfield Asset Management and Global Infrastructure Partners reflects the company’s appeal, particularly given its $40 billion enterprise value and recent stock decline. A possible leveraged buyout would be among the largest in the sector.
High-voltage power lines. Electricity distribution station. high voltage electric transmission tower. Distribution electric substation with power lines and transformers.
The AES Corporation (NYSE:AES)’s strategic direction is further underscored by its $4 billion joint venture with Air Products to develop green hydrogen in North Texas, aligning with decarbonization goals and new policy frameworks. The company views clean hydrogen as vital for reducing emissions in heavy-duty transport and industry.
While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None.
