AES Corp. (NYSE:AES) stock climbed Tuesday after the utility giant locked in a 20-year clean energy deal with Google, deepening its footprint in the fast-growing, power-hungry data center market.
AES and Google Strike 20-Year Clean Energy Deal
AES has entered into landmark agreements with Google, a subsidiary of Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), to support a planned data center in Wilbarger County, Texas, expanding the companies’ existing partnership as demand for power-intensive digital infrastructure accelerates.
These 20-year Power Purchase Agreements (PPAs) highlight AES’s role as a leading clean energy provider in the U.S., a position underscored by BloombergNEF’s Corporate Energy Market Outlook, which ranked AES as a top provider to corporate customers over the last five years.
Andrés Gluski, AES President and CEO, said, “AES is recognized as a world leader in providing energy solutions to technology companies. To-date, AES has signed agreements for nearly 12 GW of energy with data center customers, 9 GW of these are PPAs directly with hyperscalers.”
Amanda Peterson Corio, Google’s Global Head of Data Center Energy, said the Wilbarger County site represents a long-term investment in the region. “In partnership with AES, we are bringing new clean generation online directly alongside the data center to minimize local grid impact and protect energy affordability,” she stated.
The agreements aim to enhance grid reliability, affordability, and sustainability while supporting rural landowners and expanding job opportunities in Texas. This strategic move not only boosts AES’s infrastructure capabilities but also solidifies its commitment to sustainable energy solutions.
Technical Momentum Signals Further Upside
Over the past 12 months, AES has seen a 52.24% increase in its stock price. Currently, the stock is trading 3.4% above its 20-day SMA and 12.9% above its 100-day SMA, indicating a strong bullish trend. The RSI stands at 61.16, suggesting that the stock is neither overbought nor oversold, while the MACD indicates bullish momentum, with the MACD line above the signal line.
Upcoming Earnings
AES is set to report earnings on February 26, 2026. With this date rapidly approaching, here’s what analysts are anticipating:
- EPS Estimate: 61 cents (Up from 54 cents YoY)
- Revenue Estimate: $3.23 billion (Up from $2.96 billion YoY)
- Valuation: P/E of 10.7x (Indicates value opportunity)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $17.93. Recent analyst moves include:
- Barclays: Downgraded to Equal-Weight (Maintains Target to $15.00) (Feb. 4)
- Jefferies: Hold (Raises Target to $16.00) (Feb. 4)
- Argus Research: Upgraded to Buy (Target $18.00) (Dec. 5, 2025)
AES Scores High on Benzinga Edge Momentum
Below is the Benzinga Edge scorecard for AES, highlighting its strengths and weaknesses compared to the broader market:
- Value Rank: Moderate (Score: 64.03)
- Momentum Rank: Strong (Score: 84.35)
- Quality Rank: Weak (Score: 11.17)
The Verdict: AES’s Benzinga Edge signal reveals a mixed but leaning positive outlook. The strong momentum score indicates robust market performance, while the moderate value rank suggests a reasonable valuation. However, the low quality score could be a concern, signaling potential underlying issues that warrant closer scrutiny. Below is the Benzinga Edge scorecard for AES, highlighting its strengths and weaknesses compared to the broader market:
- Value Rank: Moderate (Score: 64.03)
- Momentum Rank: Strong (Score: 84.35)
- Quality Rank: Weak (Score: 11.17)
The Verdict: AES’s Benzinga Edge signal reveals a mixed but leaning positive outlook. The strong momentum score indicates robust market performance, while the moderate value rank suggests a reasonable valuation. However, the low quality score could be a concern, signaling potential underlying issues that warrant closer scrutiny.
AES Price Action: AES shares were up 0.43% at $16.32 at the time of publication on Tuesday. The stock is approaching its 52-week high of $16.78, according to Benzinga Pro data.
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