10 Lowest PE Ratio Stocks in S&P 500

7. The AES Corporation (NYSE:AES)

P/E Ratio as of April 29: 4.30

Number of Hedge Fund Holders: 53

The AES Corporation (NYSE:AES) is a global energy company that generates and distributes electricity using sources like coal, gas, hydro, wind, solar, and biomass. It serves residential, commercial, and government sectors. On April 10, Jefferies downgraded AES from Buy to Hold, bringing down the price target from $15 to $10. Jefferies cited a weak balance sheet, complex global operations, and limited long-term visibility on US tax credit benefits for the downgrade. The firm believes these factors could hinder investor interest and reduce the company’s growth potential beyond 2027. The AES Corporation (NYSE:AES) ranks 7th on our list of stocks with a low PE ratio.

On February 21, The AES Corporation (NYSE:AES) announced a quarterly dividend of $0.17595 per share, which will be distributed on May 15, to shareholders on record as of May 1.

In 2024, AES reported $698 million in net income, which is an $880 million increase from the year before. This was supported by strong performance from new renewable energy projects, fewer asset impairments, capital gains from selling AES Brasil, and currency exchange benefits. However, the company’s adjusted EBITDA dropped by $189 million to $2.64 billion, due to severe droughts and outages in Colombia, and lower profits in energy infrastructure. AES Corporation expects steady growth in 2025, with projected adjusted EBITDA between $2.65 and $2.85 billion. The company also forecasts adjusted earnings per share between $2.10 and $2.26 for 2025 and is maintaining its goal of 7-9% annual EPS growth through 2027.

According to Insider Monkey’s fourth quarter database, 53 hedge funds were bullish on The AES Corporation (NYSE:AES), compared to 47 funds in the last quarter. William B. Gray’s Orbis Investment Management was the biggest stakeholder of the company, with 22.5 million shares valued at nearly $291 million.