5-Star Stocks Poised to Pop: AES

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, global power producer AES (NYSE: AES) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at AES' business and see what CAPS investors are saying about the stock right now.

AES facts

Headquarters (Founded)

Arlington, Va. (1981)

Market Cap

$8.7 billion

Industry

Independent power producers and energy traders

Trailing-12-Month Revenue

$14.3 billion

Management

CEO Paul Hanrahan (since 2002)
CFO Victoria Harker (since 2006)

Return on Equity (Average, Past 3 Years)

23.2%

Cash / Debt

$2 billion / $19.7 billion

Other Highly Rated Utility Stocks

Southern (NYSE: SO)
Duke Energy (NYSE: DUK)
FPL Group (NYSE: FPL)

CAPS Members Bullish on AES Also Bullish on

Chesapeake Energy (NYSE: CHK)

CAPS Members Bearish on AES Also Bearish on

Ford Motor (NYSE: F)
Citigroup (NYSE: C)

Sources: Capital IQ (a division of Standard & Poor's), company press release, and Motley Fool CAPS.

On CAPS, 94.2% of the 450 members who have rated AES believe the stock will outperform the S&P 500 going forward. These bulls include stuinkc and jnbottomley.

Just last month, stuinkc singled out the stock as a global way to go green:

energy giant, international exposure, some green, insiders such as president and directors buying it up, which I love. possibility of added capital with [China Investment Corp.] rumors swirling. no dividend ... and income down past year over year, but strong revenue and eps growth rate over last 3 years.

(Since that pitch was written, AES has agreed to sell a 15% stake of itself to China Investment Corp. for $1.58 billion.)

In a more recent pitch from last week, jnbottomley expands on AES as an international power play:

[W]ell-positioned in the developing markets with affordable power solutions as well as select wealthy markets with a sustainable product offering. Moreover, 2/3 of their revenues are outside of the US so a good hedge against the US dollar. Management is strong and the company retains a sense of entrepreneurialism simply not found in the power sector at large companies.

What do you think about AES, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Southern and Duke are both Motley Fool Income Investor picks. Chesapeake is a choice of Inside Value. The Fool owns shares of both Chesapeake and FPL. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 13, 2009, at 12:18 PM, FoolsSpecialK22 wrote:

    The debt is really high on this one.

  • Report this Comment On November 13, 2009, at 1:25 PM, lfdemt632 wrote:

    Every report u have had for the last 8 months is (F) Ford, negative or bearish. I have zero financial knowledge and a high school education. But I understand capitalism and government. I had never participated in the market until i saw the basics on an investment in (F). Capitalism vs. Government run. Are all of you such pros that your so burried in the numbers that u did'nt take up the opportinity last March when ford decided to take the capitalist route?

    Ford over $10 by March 2010. Eat that MBA's

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Related Tickers

2/9/2010 4:00 PM
F $11.15 Up +0.18 +1.64%
Ford Motor Company CAPS Rating: **
AES $12.13 Up +0.38 +3.23%
The AES Corp CAPS Rating: ****
C $3.18 Up +0.03 +0.95%
Citigroup, Inc. CAPS Rating: ***
FPL $46.46 Down -0.43 -0.92%
FPL Group, Inc. CAPS Rating: *****
SO $31.29 Up +0.16 +0.51%
The Southern Compa… CAPS Rating: ****
DUK $16.56 Up +0.24 +1.47%
Duke Energy Corp CAPS Rating: ****
CHK $24.51 Up +0.27 +1.11%
Chesapeake Energy… CAPS Rating: *****

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