FirstEnergy Corp. (FE), headquartered in Akron, Ohio, is a leading electric utility company serving over 6 million customers across the Midwest and Mid-Atlantic regions of the United States. With a market cap of $22.8 billion, FirstEnergy operates through its subsidiaries, including Ohio Edison, The Illuminating Company, and Jersey Central Power & Light.
Companies worth $10 billion or more are generally described as "large-cap stocks," FirstEnergy fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the regulated electricity industry. The company focuses on modernizing the electric grid, enhancing reliability, and investing in renewable energy infrastructure while maintaining a strong presence in regulated utility markets.
However, FirstEnergy has slipped 12% from its 52-week high of $44.97 achieved on Sept. 5. Furthermore, FE stock declined marginally over the past three months, outpacing broader Dow Jones Industrial Average’s ($DOWI) 2% fall during the same time frame.
Zooming out, FE has plunged 10.1% over the past six months but has soared 3.4% over the past 52 weeks, lagging behind $DOWI’s marginal rise over the past six months and 5.5% returns over the past year.
To confirm the stock’s persistent downtrend, FE has mostly traded below its 200-day moving average since early December. Additionally, the stock has largely remained below its 50-day moving average since late October, reinforcing bearish sentiment.
Utility stocks like FirstEnergy tend to perform well in uncertain market conditions, offering investors a defensive hedge with consistent dividends and predictable revenue streams. FirstEnergy shares climbed more than 1% on Mar. 13 as investors sought refuge in defensive utility stocks amid a broader market decline.
FirstEnergy has substantially lagged behind its peer Entergy Corporation’s (ETR) 29.8% gains over the past six months and 62.3% returns over the past year.
Among the 17 analysts covering the FE stock, the consensus rating is a “Moderate Buy.” The mean price target of $44.20 suggests an 11.7% upside potential from current price levels.
