Replies to post #116442 on Savvy Trades and Investments

[SSKILLZ1]

AES

Brought back AES today at $16.79 this morning. here is what I like.

1) They last quarter guided for the higher end of the $1.87-1.97 range, I wouldn't be surprised if earnings is close to $2.00 this year all said and done. That is a pe of just about 8.5 times this years estimates, which is very very cheap for a utility in my opinion. I think it is deserving of a 12 PE in my opinion at the very least which would put FV in the mid 20's over the next 6-12 months.

2) You get paid while you wait, where I purchased it, it is yielding about 4.1%. Soon enough too it will most likely be time for another dividend increase. Which is always a plus.

3) AES is guiding for 7-9% adjusted EPS growth over the next couple of years. Hence I expect next years earnings to possibly be north of $2.10.

4) AES Has a great Track record of Adjusted EPS growth. Below is a chart of it's consistent y/y imporvements in these numbers.

 
 FY 24 Estimate $1.87-1.97 (Higher end of range) 
 FY 23 $1.76 
 FY 22 $1.67 
 FY 21 $1.52 
 FY 20 $1.44 
 FY 19 $1.36 
 FY 18 $1.24 
 FY 17 $1.08 
 

5) AES is a great way to play the growth of data centers. And a cheap way at doing this.

Conclusion: I think AES is a very attractive investment at these levels. Time will tell. I will buy more on weakness. All is just my opinion, and I could always be wrong though.