Recommendation: Speculative Buy
Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
---|---|---|---|---|---|---|---|
21 Aug, 24 | AES | Speculative Buy | USD 17.38 | USD 18.5 | USD 20.3 | 26 days | 16.8% |
Data Powered by EOD Historical Data (“EODHD”).
The AES Corporation, together with its subsidiaries, operates as a diversified power generation and utility company in the United States and internationally. The company owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries; owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market. It uses various fuels and technologies to generate electricity, such as coal, gas, hydro, wind, solar, and biomass, as well as renewables comprising energy storage and landfill gas. The company owns and/or operates a generation portfolio of approximately 34,596 megawatts and distributes power to 2.6 million customers. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was incorporated in 1981 and is headquartered in Arlington, Virginia.
Improved Shareholder's Wealth: ROE of 16.0% in Q1 FY24 vs Industry Median of 1.3%
Enhanced Profitability: Gross Margin of 20.1% in Q1 FY24 vs 18.3% in Q1 FY23
Lower Liquidity: Current Ratio of 0.78x in Q1 FY24 vs Industry Median of 0.97x
Balance Sheet Risk: Debt-Equity of 10.21x in Q1 FY24 vs Industry Median of 2.36x
Project Execution Risks, Operational Disruptions, Debt Management:, Renewable Energy Transition, etc.
Entry Price | Support* | Target 1 | Target 2 |
---|---|---|---|
17.38 | 15.72 | 18.5 | 20.3 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
AES tock price has successfully escaped its down trending channel, signalling a significant shift from a declining trend to an ascending one. The stock's ability to demonstrate resilience around key support levels suggests a strong likelihood of an upward reversal in the near term. Additionally, the 14-period RSI has now breached its midpoint, further bolstering the optimistic sentiment. Moreover, the stock is poised to reclaim its key moving average, which could trigger a surge in demand, ultimately reinforcing the positive momentum.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Utilities Industry: Utilities - Diversified
Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
---|---|---|---|---|---|---|---|---|
AES The AES Corporation |
-0.105 0.84% | 12.39 | 9.44 | 6.37 | 0.79 | 2.82 | 2.99 | 13.89 |
IBDSF Iberdrola S.A |
-0.4265 3.08% | 13.40 | 16.24 | 14.71 | 1.51 | 1.42 | 2.45 | 9.52 |
IBDRY Iberdrola SA |
-0.3 0.56% | 53.75 | 16.07 | 14.58 | 1.50 | 1.41 | 2.42 | 9.41 |
ENLAY ENEL Societa per Azioni |
-0.04 0.57% | 7.02 | 12.18 | 10.44 | 0.74 | 1.96 | 1.40 | 7.34 |
ESOCF Enel SpA |
- -% | 7.05 | 12.02 | 10.42 | 0.73 | 1.95 | 1.40 | 7.34 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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