News        Sectors        Watchlists

The AES Corporation (AES)

The AES stock forecast: buy or sell

Close on Sep 29th, 2020
$18 0.01%
3 months performance
0.25%
Published: September 29th, 2020 - 9.07pm EDT

The AES stock outlook

  • The AES closed today at $18.00 after only changing a 0.73%.
  • The stock is configuring an uptrend pattern since mid-May, when it bottomed at $10.90. This rally marked a 65.14% gain
  • The AES Corporation operates as a diversified power generation and utility company.

Disclaimer:
The viewpoints expressed in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this text does not have an understanding of the particular positions of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are posted for education reasons only

The AES stock charts

Should I buy The AES stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is AES stock a buy?

In the current situation of The AES there is not any eligible buy setup. This doesn't mean AES will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell The AES stock?

When is it time to sell The AES?. Much like when we have to buy shares, determining when is appropiate to sell is not a capricious decision, and we must follow our own trading strategy. We like very simple strategies to guide us on when is the best moment to sell a stock. Be aware that these strategies should not be used for shorting The AES stock

A guiding principle is that you should not mantain an open trade that results in higher than expected losses by the time of purchase. The moment to sell your stock always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell The AES stock?

In the current situation of The AES there is not any eligible sell setup, so The AES stock holders with operations in profit can keep their positions

Analysts' recommendations to buy or sell The AES stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, just one analyst rating was published for The AES

The AES ratings

Brokerage firmRating
Sep 18th, 2020
Morgan Stanley Buy

Technical analysis

The AES shares started an uptrend in mid-May, and grew a gorgeous 65.14%. The price shows higher peaks and higher troughs, and along the way gave some entry points for those who wanted to enter. Latest pullback was in early September, when price bounced at $17.13. Like in all uptrends, price needs to take breath and now price is consolidating the gains in a range between $19.12 and $17.13

SMAs overview

Moving averages are tools for investors to detect market direction. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

AES SMAs chart

Supports and resistances

Technical analysts use support and resistance levels to find price points in the stock price action that tend to act as glass ceiling, containing the price of an asset to move up or down. A support level is a level where the price tends to stop as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it will probably continue descending until approaching another support level. In contrast, resistance levels are where the price tends to find opposition as it rises. Again, this means that the price is more likely to "rebound" at this level, and if it finally breaks this level, it will rise more easily until it meets the next resistance

The current resistances are:

  • R1: $18.09 (0.5% above)
  • R2: $18.34 (1.89% above)
  • R3: $18.44 (2.44% above)
  • The current supports are:

  • S1: $17.93 (-0.39% below)
  • S2: $17.86 (-0.78% below)
  • S3: $17.61 (-2.17% below)
  • Bollinger bands

    This is an indicator that was developed in the 1980s by John Bollinger. It consists of three lines that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price surpassed the upper band on September 18, the price corrected downwards by 5.86%

    AES RSI chart

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that gauges price changes to spot when the share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 in late August after just crossing to the overbough zone for a single day (weak signal). The RSI value today was 54.24. The AES shares slightly changed a 0.39% since RSI lost the overbought zone

    AES RSI chart

    Earnings and financials

    The AES Corporation (AES) came out with second-quarter earnings of $0.25 per share, slightly upping the analysts consensus estimate of $0.23 per share. This Q2 report represents an earnings surprise of 8.7%. Company's turnover was $2.2 billion in contrast to $2.5 billion estimated by analysts.

    Same quarter one year ago, reported EPS was $0.26, so current EPS means a decrease of -3.85%. Sales went down a -10.71% on an annualized basis in the Q2, from $2.5B to $2.2B last quarter.

    The AES will host the earnings call on early next November. Market forecasts an earnings per share (EPS) of $0.47, compared to previous quarter that was $0.25. Financial reporting day has an additional risk for stock traders as the results posted can jump up or down the stock price with exceptionally low liquidity and not respecting your buy/stop-loss orders. Check company's website to confirm time and details about the earnings call and the earnings report.

    AES revenues and profits chart