FE Should I Buy
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FirstEnergy Corp is not a strong buy for a beginner, long-term investor at this moment. While the stock shows some bullish technical indicators and positive sentiment from analysts, the lack of strong proprietary trading signals, weak financial performance in the latest quarter, and hedge fund selling trends suggest a cautious approach. Holding the stock or waiting for further clarity on financial performance and market trends is recommended.
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200), a positive MACD histogram (0.0363), and RSI_6 at 74.454, which is neutral. The current price of $51.31 is near the R1 resistance level of $51.706, indicating limited immediate upside potential. The pre-market change of -0.16% suggests mild bearish sentiment.
Analysts have raised price targets consistently, with the latest target at $56 from Scotiabank, citing a 30% boost to the capex plan. The Gore-Doubs-Goose Creek Improvements Project could enhance grid reliability, which is a long-term positive.
Hedge funds are aggressively selling, with a 4674.66% increase in selling over the last quarter. The latest financials show a significant drop in net income (-118.77% YoY) and EPS (-117.78% YoY), along with a decline in gross margin.
In Q4 2025, revenue increased by 19.55% YoY to $3.797 billion, but net income dropped to -$49 million, and EPS fell to -$0.08. Gross margin also declined to 52.75%, down 5.25% YoY. This indicates weak profitability despite revenue growth.
Analysts are generally positive, with multiple firms raising price targets recently. The highest target is $56 (Scotiabank), and the lowest is $50 (Barclays). Ratings range from Neutral to Overweight, with optimism around growth opportunities and capex plans.
