Why AES Corporation's Stock Fell 19% in March
Shares of diversified utility AES Corporation (NYSE: AES) dropped 18.7% in March, according to data from S&P Global Market Intelligence. That was much worse than the 13% drop in the S&P 500 Index, and way more than the 11% decline seen by the average utility stock, as measured by Vanguard Utilities ETF.
The thing is, AES is not your average electric utility, and the differences are important today.
When most people think of a utility, they envision a government-regulated company that produces electricity. It's a fairly boring business model that's very stable over time, assuming management doesn't do anything risky (such as over-leveraging the balance sheet).
Source Fool.com
