Stock Price & Analysis

Based on the provided data and recent market activity, here's a concise analysis of FirstEnergy (FE):

Technical Analysis

• Current price at $40.00, showing a -0.65% decline in the last trading session
• RSI-14 at 50.12 indicates neutral momentum
• MACD slightly positive with bullish divergence (MACD: 0.06, Signal: 0.02)
• Trading between key Bollinger Bands (Lower: $38.72, Middle: $39.96, Upper: $41.19)

Fundamental Outlook

• Recent analyst actions show mixed sentiment:
  • Guggenheim raised price target to $52 (30% upside)
  • Wolfe Research downgraded to Peer Perform from Outperform
  • Consensus maintains "Moderate Buy" rating

Valuation Metrics

• Key ratios from 2022 (most recent full year data):
  • P/E: 59.09x
  • EV/EBITDA: 13.99x
  • P/B: 2.36x
  • Dividend Yield: 3.72%

Market Position

• Stock has underperformed with only 5.9% gain over the past year compared to S&P 500's 20.5% increase
• Q3 earnings missed expectations with adjusted EPS of $0.85 vs $0.91 consensus
• Company narrowed FY2024 guidance to $2.61-$2.71 per share

Recommendation: HOLD

• Current technical indicators suggest a neutral position
• While valuation appears stretched, the stable dividend yield provides income support
• Near-term catalysts include resolution of regulatory issues in Ohio and grid modernization initiatives

Based on the provided data and market context, here is the price prediction analysis for FirstEnergy (FE) stock in 2025:

The stock is expected to reach $46.67 by end of 2025, representing a 16.7% upside from current levels, driven by the company's grid modernization investments and 6-8% annual earnings growth target. This target price is supported by:

Technical Analysis

The stock is currently trading in a consolidation pattern between $39-41 range, with key support at $38.75 and resistance at $41.29 based on Fibonacci levels. The RSI at 50.12 indicates neutral momentum.

Fundamental Drivers

• Capital investment plan increased 7% to $4.6 billion for 2025, showing commitment to infrastructure growth
• EPS expected to grow 3.9% to $2.66 in 2024, with 6-8% long-term annual growth target
• Transition away from coal operations may create near-term earnings headwinds but positions company for sustainable growth

Risk Factors

• Regulatory uncertainties in Ohio market
• Declining coal operations earnings
• Pension-related earnings quality concerns raised by analysts

The most likely scenario is FE stock reaching $46-47 range by end of 2025 (60% probability), supported by:

• Infrastructure investments driving earnings growth
• Resolution of regulatory issues
• Successful transition from legacy operations

Bearish case of $39-40 (25% probability) could occur if:

• Regulatory headwinds persist
• Coal earnings decline faster than expected
• Broader utility sector weakness

Bullish case of $50-52 (15% probability) possible with:

• Faster than expected earnings growth
• Positive regulatory outcomes
• Multiple expansion to peer levels

The S1 support level for FE Stock is $39.62 ,The R1 resistant level for FE Stock is $41.97.

As of the end of day on 2025-02-21, the price of FE Stock was $42.29.

The target price for FE Stock according to analyst rating is 46.60, with the highest price target at 52.00 and the lowest at 42.00. Analysts have a Moderate Buy rating on FE Stock overall.

The market cap of FE is $24.4B.

Based on the comprehensive financial data analysis, FirstEnergy (FE) appears fairly valued at current levels. The company's P/E ratio has significantly improved from 59.09 in 2022 to 18.74 in 2023, now trading closer to industry averages. Net income showed substantial improvement from $406M to $1.1B in 2023, demonstrating stronger operational efficiency. Technical indicators show neutral momentum with RSI at 50.12 and price trading near its 200-day moving average of $40.61. Recent analyst actions include a price target increase to $52 at Guggenheim, though Wolfe Research downgraded to Peer Perform citing concerns over pension and coal earnings quality. The stock's current dividend yield of 4.36% provides decent income support.

FirstEnergy Corp (FirstEnergy) and its subsidiaries are principally involved in the transmission, distribution, and generation of electricity. The Company operates through two segments: Regulated Distribution and Regulated Transmission segments. The Regulated Distribution distributes electricity through FirstEnergy’s utility operating companies, serving customers within 65,000 square miles of Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York, and purchases power for its POLR, SOS, SSO and default service requirements in Ohio, Pennsylvania, New Jersey, and Maryland. This segment also controls approximately 3,580 megawatts (MWs) of regulated electric generation capacity located primarily in West Virginia and Virginia. The Regulated Transmission provides transmission infrastructure owned and operated by the Transmission Companies and certain of FirstEnergy's utilities (JCP&L, MP, PE and WP) to transmit electricity from generation sources to distribution facilities.

Based on FirstEnergy's historical performance and future growth prospects, the stock price is projected to reach $52 by 2030. The forecast is supported by the company's stable revenue growth trajectory (averaging 6% annually) and consistent improvement in operational efficiency. The utility sector's defensive nature and FirstEnergy's strong market position in regulated markets provide additional confidence in this long-term target.

FE has a total of 12042 employees.