AES, DHT & GSL: The Flock of Dark Horse Utility Stocks Flying Under Wall Street’s Radar

While Wall Street often overfocuses on mega-cap tech giants and momentum-driven growth powerhouses, a trio of overlooked Industrials/Utility underdogs is quietly marching up the slope and building a resounding case for long-term upside. Global energy company AES Corp (AES), crude oil enabler DHT Holdings (DHT), and shipping container leasing specialist Global Ship Lease (GSL) may not grab headlines or the attention of many analysts’ research notes, but their fundamentals and analyst outlooks suggest they are well-positioned to outperform over the next twelve months.

Each company trades at a modest valuation, with price-to-earnings ratios well below the market average, while also offering attractive dividend yields ranging from 5% to over 6%—a rarity in today’s topsy-turvy market.

Analyst consensus is bullish across the board, with upside targets ranging from 20% to 26%, and both DHT and AES carry Strong Buy ratings. Moreover, these three dark horse stocks boast high Smart Scores, striking a balance between growth and income potential, and therefore emerge as true underdogs—underfollowed, undervalued, yet packed with potential in both the short and long term.

How TipRanks Users Can Find Undervalued Stocks

To detect stocks such as these, investors can use the TipRanks Stock Screener tool, with a tutorial also available. By selecting appropriate values, users can find stocks that meet the suitable criteria for investment consideration.

AES, DHT, and GSL each provide dividend yields above 5%, a standout feature that appeals to long-term value investors. These generous payouts not only create a steady stream of passive income but also reduce the reliance on share price appreciation for overall returns.

Next, these stocks offer a low P/E ratio of less than 15, indicating that the market may be undervaluing them relative to their earnings. AES trades at a P/E of 9.56, DHT at 9.91, and GSL at an exceptionally low 2.79—all well below the broader market average, which often hovers in the high teens or low twenties.

Another discerning feature is the stocks’ low PEG ratios — a valuation metric that determines the relative trade-off between the price of a stock, its EPS, and its expected growth. Typically, companies with higher growth rates trade at higher P/E ratios. As a result, relying solely on the P/E ratio can make fast-growing businesses look overpriced compared to their peers. To address this, dividing the P/E ratio by the earnings growth rate provides a more balanced measure, allowing for fairer comparisons across companies with different growth trajectories.

The PEG Lens

When viewed through the price/earnings-to-growth (PEG) lens, AES, DHT, and GSL each present compelling value opportunities. Their P/E ratios are already well below the market average, and factoring in earnings growth only strengthens the case. AES combines steady utility-sector growth with reliable dividends, making its PEG ratio appealing to defensive investors.

DHT benefits from robust tanker demand, pairing moderate growth with a low valuation to produce an attractive PEG profile. GSL is the clear standout: its exceptionally low P/E, supported by rising global shipping demand, suggests a PEG ratio that indicates deep undervaluation. Taken together, these under-the-radar stocks demonstrate how PEG can uncover opportunities that a simple P/E comparison might miss.

What are the 10 Hottest Stocks Right Now?

Filtering by Performance, as of the start of September 2025, the ten hottest stocks are listed below, having racked up gains ranging from 680% to 10,707% since January this year. At the top of the pile is Regencell Bioscience (RGC), a relatively recent biotech start-up that researches, develops, and commercializes treatments for neurocognitive disorders and degeneration.

When filtering for the top 10, among only the top-tier firms with market caps exceeding $200 billion, the list changes dramatically. Defense-sector starlet Palantir Technologies (PLTR) stands out most with almost 400% in share price gains so far in 2025.

At last month’s earnings call, Palantir underscored robust revenue growth, driven largely by U.S. commercial and government segments, alongside major contract wins and improving profitability. The firm surpassed $1 billion in quarterly revenue for the first time with a 48% year-over-year growth in Q2 2025.

However, international commercial revenue slipped 3% year-on-year according to the most recent figures, and strategic commercial contracts showed only modest progress. Despite those headwinds, the overall tone remains upbeat, supported by strong financial performance and accelerating growth metrics.

What are the Best Utilities Stocks to Buy?

If selecting for the best share price performance in the Utilities sector alone, the top three stocks are Oklo Inc (OKLO), Korea Electric Power (KEP), and Talen Energy Corp (TLN).

Do Utility Stocks Do Well in a Recession?

Historically, utility stocks are considered defensive stocks prized for their durability in all market conditions. Utility companies provide essential services, such as water, gas, and energy, which remain in high demand during recessions. In some cases, even more so. Given their ability to consistently find demand, utility stocks tend to generate stable cash flows over multi-year timeframes, regardless of how well consumption is faring or how high inflation is. Moreover, utility stocks are revenue powerhouses, which means dividends are a common sight for shareholders.

However, not all is plain sailing in the Utility sector. Utility stocks have their own Achilles’ heels, including a heavy reliance on debt to finance infrastructure projects, which can often result in paying higher interest rates, thereby squeezing profitability. Higher rates also diminish the appeal of utility dividends, as investors find safer fixed-income alternatives, such as government or corporate bonds, more appealing.