Earnings estimates for FirstEnergy Corporation FE have been revised upward in the past 90 days, reflecting analysts’ optimism in the stock. The Zacks Consensus Estimate for 2019 and 2020 earnings have inched up 1.5% and 0.4% to $2.59 and $2.45 per share, respectively, during the said period.
FirstEnergy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Let’s focus on the factors that make the company an appropriate investment option at the moment.
Earnings Surprise Trend & Long-Term Growth
FirstEnergy’s average four-quarter positive earnings surprise is 5.09%.The company’s long-term (3-5 years) earnings growth rate is pegged at 6%.
Dividend Yield & Return on Equity (ROE)
Currently, the company has a dividend yield of 3.57% compared with the Zacks S&P 500 composite’s 1.98% and the industry’s 2.95%.
FirstEnergy has an ROE of 21.90%, higher than the industry’s average of 9.63% and Zacks S&P 500 composite’s 17.70%. This indicates the company’s efficiency in utilizing shareholders’ funds.
In the past 12 months, FirstEnergy’s shares have rallied 25.3% compared with the industry’s growth of 14.6%.
Focus on Lowering Emissions
The company focuses on reducing emission levels and has taken initiatives for the same. As of December 2018, FirstEnergy achieved 62% reduction in CO2 and expects to achieve 80% later in 2019. By 2045, it aims to reduce CO2 emissions from generating fleet by at least 90%, below 2005 levels.
Other Key Picks
Some other top-ranked stocks from the same industry are Pinnacle West Capital Corp. PNW, DTE Energy Co. DTE and IDACORP, Inc. IDA, each carrying a Zacks Rank of 2.
Pinnacle West Capital pulled off average positive earnings surprise of 4.97% in the last four quarters. The company’s long-term earnings growth is pegged at 5%.
DTE Energy came up with average positive earnings surprise of 12.24% in the last four quarters. The company’s long-term earnings growth is pegged at 6%.
IDACORP delivered average positive earnings surprise of 13.83% in the last four quarters. The company’s long-term earnings growth is pegged at 3.80%.
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