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FirstEnergy Stock: Is FE Underperforming the Utilities Sector?

Neha Panjwani

Wed, Jun 18, 2025, 6:56 AM 2 min read

FirstEnergy Corp. (FE), headquartered in Akron, Ohio, generates, transmits, and distributes electricity as well as explores, produces, and distributes natural gas. Valued at $23 billion by market cap, the company owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power generating facilities, and provides energy management and other energy related services.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and FE perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the utilities - regulated electric industry. FirstEnergy's diversified presence in regulated and competitive markets balances its revenue streams. Strategic investments in transmission infrastructure boost grid reliability and support renewable energy integration, serving over 6 million customers across multiple states with a seasoned leadership team.

Despite its notable strength, FE slipped 11.7% from its 52-week high of $44.97, achieved on Sep. 5, 2024. Over the past three months, FE stock has declined marginally, underperforming the Utilities Select Sector SPDR Fund’s (XLU) 1.5% gains during the same time frame.

In the longer term, shares of FE dipped marginally on a YTD basis but climbed 3.9% over the past 52 weeks, underperforming XLU’s YTD gains of 6.2% and 16.2% returns over the last year.

To confirm the bearish trend, FE has been trading below its 50-day and 200-day moving averages since early June.

On Apr. 23, FE shares closed down marginally after reporting its Q1 results. Its adjusted EPS of $0.67 topped Wall Street expectations of $0.60. The company’s revenue was $3.8 billion, beating Wall Street forecasts of $3.7 billion. FE expects full-year adjusted EPS in the range of $2.40 to $2.60.

In the competitive arena of utilities - regulated electric, Duke Energy Corporation (DUK) has taken the lead over FE, showing resilience with a 6.5% gain on a YTD basis and 13.9% uptick over the past 52 weeks.

Wall Street analysts are moderately bullish on FE’s prospects. The stock has a consensus “Moderate Buy” rating from the 16 analysts covering it, and the mean price target of $45.36 suggests a potential upside of 14.2% from current price levels.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

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