4 Reasons Why You Should Add FirstEnergy to Your Portfolio
Earnings estimates for FirstEnergy Corporation FE 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.
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%.
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.
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, Algonquin Power & Utilities Corp. AQN and Ameren Corp. AEE.
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.
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NRG Energy, Inc. (NRG) : Free Stock Analysis Report
FirstEnergy Corporation (FE) : Free Stock Analysis Report
Ameren Corporation (AEE) : Free Stock Analysis Report
Algonquin Power & Utilities Corp. (AQN) : Free Stock Analysis Report
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