Akron, Ohio-based FirstEnergy Corp. (FE) is a diversified energy company. It generates, transmits, and distributes electricity in the United States. With a market cap of $25.6 billion, FirstEnergy operates through Regulated Distribution and Regulated Transmission segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," FirstEnergy fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the regulated electricity industry. It owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power-generating facilities.
FirstEnergy touched its 52-week high of $44.97 on Sep. 5 and is currently trading 1.4% below that peak. FE gained 14.4% over the past three months, outpacing the S&P 500 Index’s ($SPX) 3.7% gains during the same time frame.
Over the longer term, FE has underperformed SPX. FE gained 20.1% over the past 52 weeks compared to SPX’s 26.6% gains during the same time frame. However, in 2024, FE is up 21%, outperforming SPX’s 18.1% returns on a YTD basis.
To confirm the recent bullish trend, FE has consistently traded above its 200-day moving average since early March and above its 50-day moving average since mid-July.
Shares of Firstenergy experienced marginal gains in the trading session after the release of its Q2 earnings on Jul. 30. The company reported a robust 9.1% year-over-year growth in total revenues, reaching $3.3 billion. Firstenergy’s focus on enhancing top-line growth has put pressure on its profit margins, resulting in an 80.9% decline in earnings attributable to shareholders, which fell to $45 million.
Nevertheless, it met its adjusted EPS estimates of $0.56 and reaffirmed its targeted 6% to 8% long-term annual operating EPS growth and full-year non-GAAP EPS guidance of $2.61 to $2.81, providing reassurance to investors.
Firstenergy’s competitor, Entergy Corporation (ETR), has outperformed FE over the past year. ETR gained 30.6% over the past year and 27% in 2024.
Among the 15 analysts covering the FE stock, the consensus rating is a “Moderate Buy.” Although FE is trading above its mean price target of $44.13, the Street-high target of $49 represents a potential upside of 10.5% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
