FE Should I Buy
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FirstEnergy Corp is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has positive developments such as grid modernization investments and analyst optimism, its recent financial performance, including a significant drop in net income and EPS, raises concerns. Additionally, hedge fund selling and lack of strong trading signals suggest waiting for more favorable conditions before investing.
The technical indicators show a bullish trend with the MACD histogram above 0 and positively expanding, bullish moving averages (SMA_5 > SMA_20 > SMA_200), and RSI at 68.511, which is neutral. The stock is trading near its resistance level of 49.926, suggesting limited immediate upside.
$36 billion investment plan for grid modernization from 2026 to
Positive analyst sentiment with price targets raised to $50 by multiple firms.
Incremental Federal Energy Regulatory Commission transmission capex upside pushing rate base growth to 10%.
Significant hedge fund selling activity, with a 4674.66% increase in selling over the last quarter.
Poor financial performance in Q4 2025, including a net income drop of -118.77% YoY and EPS decline of -117.78% YoY.
Lack of recent congress trading data or influential figure purchases.
In Q4 2025, revenue increased by 19.55% YoY to $3.797 billion. However, net income dropped to -$49 million (-118.77% YoY), EPS fell to -$0.08 (-117.78% YoY), and gross margin decreased to 52.75% (-5.25% YoY).
Analysts are generally optimistic, with Morgan Stanley, Wolfe Research, and Barclays maintaining Overweight or Outperform ratings and setting price targets at $50. However, some firms have slightly lowered their targets recently, reflecting cautious optimism.
