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4 Reasons Why You Should Add FirstEnergy to Your Portfolio
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Earnings estimates for FirstEnergy Corporation (FE - Free Report) have been revised upward in the past 60 days, reflecting analyst’s optimism in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings have moved up 2.5% and 2.4% to $2.46 and $2.51, respectively.
Let’s focus on the factors that make FirstEnergy a profitable pick.
Earnings & Surprise History
In second-quarter 2018, FirstEnergy delivered earnings of 62 cents per share, beating the Zacks Consensus Estimate of 53 cents by 17%.
The company’s average four-quarter positive earnings surprise is 7.8%.
Zacks Rank & VGM Score
The stock holds a Zacks Rank #2 (Buy) and has an impressive VGM Score of B.
Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.
Dividend Yield
The company is paying dividend since 1998. Currently, its dividend yield is 3.88%, higher than industry’s 3.28% and Zacks S&P 500 composite’s 1.76%.
Investment Plans
FirstEnergy is fully regulated and making strategic investments to strengthen transmission and distribution business. The company aims to invest nearly $5.7-$6.7 billion for strengthening its distribution network through 2021.
Under the “Energizing the Future” plan, the company plans to invest $1.1 billion in 2018, which will be growing up to $1.2 billion per year from 2019 through 2021. The company’s modernization drive will boost service reliability and lead to customer retention.
Price Movement
The shares of FirstEnergy have gained 15.0% in the past 12 months, against the industry’s decline of 5.5%.
Other Stocks to Consider
A few top-ranked stocks from the same space are NRG Energy, Inc. (NRG - Free Report) , Algonquin Power & Utilities Corp. (AQN - Free Report) and Ameren Corp. (AEE - Free Report) .
NRG Energy sports a Zacks Rank #1 (Strong Buy). The company delivered an average earnings surprise of 213.28% in the past four quarters. The Zacks Consensus Estimate for earnings moved up 3.5% in the past 30 days. You can see the complete list of today's Zacks #1 Rank stocks here.
Algonquin Power & Utilities holds a Zacks Rank #2. The company delivered an average earnings surprise of 36.39% in the past four quarters. The Zacks Consensus Estimate for earnings moved up 3.0% in the past 30 days.
Ameren Corporation holds a Zacks Rank #2 (Buy). The company delivered an average earnings surprise of 7.69% in the past four quarters. The Zacks Consensus Estimate for earnings moved up 5.2% in the past 30 days.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
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4 Reasons Why You Should Add FirstEnergy to Your Portfolio
Earnings estimates for FirstEnergy Corporation (FE - Free Report) have been revised upward in the past 60 days, reflecting analyst’s optimism in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings have moved up 2.5% and 2.4% to $2.46 and $2.51, respectively.
Let’s focus on the factors that make FirstEnergy a profitable pick.
Earnings & Surprise History
In second-quarter 2018, FirstEnergy delivered earnings of 62 cents per share, beating the Zacks Consensus Estimate of 53 cents by 17%.
The company’s average four-quarter positive earnings surprise is 7.8%.
Zacks Rank & VGM Score
The stock holds a Zacks Rank #2 (Buy) and has an impressive VGM Score of B.
Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.
Dividend Yield
The company is paying dividend since 1998. Currently, its dividend yield is 3.88%, higher than industry’s 3.28% and Zacks S&P 500 composite’s 1.76%.
Investment Plans
FirstEnergy is fully regulated and making strategic investments to strengthen transmission and distribution business. The company aims to invest nearly $5.7-$6.7 billion for strengthening its distribution network through 2021.
Under the “Energizing the Future” plan, the company plans to invest $1.1 billion in 2018, which will be growing up to $1.2 billion per year from 2019 through 2021. The company’s modernization drive will boost service reliability and lead to customer retention.
Price Movement
The shares of FirstEnergy have gained 15.0% in the past 12 months, against the industry’s decline of 5.5%.
Other Stocks to Consider
A few top-ranked stocks from the same space are NRG Energy, Inc. (NRG - Free Report) , Algonquin Power & Utilities Corp. (AQN - Free Report) and Ameren Corp. (AEE - Free Report) .
NRG Energy sports a Zacks Rank #1 (Strong Buy). The company delivered an average earnings surprise of 213.28% in the past four quarters. The Zacks Consensus Estimate for earnings moved up 3.5% in the past 30 days. You can see the complete list of today's Zacks #1 Rank stocks here.
Algonquin Power & Utilities holds a Zacks Rank #2. The company delivered an average earnings surprise of 36.39% in the past four quarters. The Zacks Consensus Estimate for earnings moved up 3.0% in the past 30 days.
Ameren Corporation holds a Zacks Rank #2 (Buy). The company delivered an average earnings surprise of 7.69% in the past four quarters. The Zacks Consensus Estimate for earnings moved up 5.2% in the past 30 days.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
See Zacks Best EV Stock Free >>