FirstEnergy Corp. (FE), based in Akron, Ohio, is a major player in the U.S. electricity market, engaged in generating, distributing, and transmitting electricity. With a market capitalization of $23.8 billion, FirstEnergy operates various power generation facilities, including coal, nuclear, hydroelectric, wind, and solar, serving customers in states such as Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York.

Over the past year, shares of FirstEnergy have not kept pace with the broader market. While FE’s stock has increased by 3.9%, the S&P 500 Index ($SPX) has risen by 12.7%. However, on a year-to-date (YTD) basis, FE is up by 3.7%, outperforming the minimal rise in the SPX.

Narrowing the focus further, FirstEnergy has also lagged behind the Utilities Select Sector SPDR Fund (XLU), which gained 11.8% in the past year and returned 5.2% YTD.

Following its Q1 earnings release on April 23, FirstEnergy’s shares declined slightly, despite better-than-expected results. The company reported revenue of $3.8 billion and an adjusted EPS of $0.67, both surpassing analyst expectations. Year-over-year, revenue rose by 14.5%, and core earnings showed a significant improvement of 36.7%, supported by new base rates in Pennsylvania, West Virginia, and New Jersey, reduced financing costs, and typical weather-related demand.

Additionally, FirstEnergy reaffirmed its fiscal 2025 core earnings guidance, maintaining a range of $2.40 to $2.60 per share. The company also targets a compound core earnings growth rate of 6% to 8% from 2025 through 2029.

For the current fiscal year, which ends in December, analysts expect a 3% decline in EPS to $2.55. FirstEnergy’s earnings surprise history has been varied; it met or exceeded consensus estimates in two of the last four quarters but fell short on two occasions.

Among the 16 analysts covering FE, there is a consensus rating of “Moderate Buy,” which includes six “Strong Buy,” one “Moderate Buy,” and nine “Hold” ratings.

This configuration has remained relatively stable over the past three months. On April 28, Mizuho Financial Group, Inc. (MFG) maintained a “Neutral” rating on FE, increasing its price target to $43, indicating a potential upside of 4.3% from current levels.

The average price target of $45.21 suggests a 9.7% upside from FirstEnergy’s current prices, while the highest target of $50 indicates a potential increase of 21.3%.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.