10 Best Cheap Stocks to Buy Under $10

2. AES Corp. (NYSE:AES)

Share Price as of April 22: $9.80

Forward P/E Ratio as of April 22: 4.45

Number of Hedge Fund Holders: 53

AES Corp. (NYSE:AES) is a power generation and utility company that owns and operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. It also owns and operates a generation portfolio of approximately 32,109 megawatts and distributes power to about 2.7 million customers.

In 2025, the company anticipates over 60% year-over-year growth in the Renewables Strategic Business Unit’s adjusted EBITDA. This increase is attributed to the financial benefits realized from the maturing of the company’s renewable portfolio, which includes the addition of 6.6 gigawatts of new capacity that was inaugurated in 2023 and 2024. These projects are now online and operating and will contribute to a full year of EBITDA in 2025.

This growth reflects increasing economies of scale as AES has expanded its online renewable capacity, from 5.9 gigawatts in 2018 to 16.2 gigawatts currently (excluding Brazil). Furthermore, the development business is becoming more efficient. The profitability per megawatt of new Power Purchase Agreements (PPAs) signed has also increased. For the long term, AES Corp. (NYSE:AES) expects an average annual CAGR of 19% to 21% for the Renewables SBU’s adjusted EBITDA.