We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FirstEnergy (FE) Focused on Improving Service Reliability
Read MoreHide Full Article
An affiliate of diversified energy company FirstEnergy Corporation (FE - Free Report) , Toledo Edison announced that it has made investments in the infrastructural improvement of its electric distribution system.
Details of the Project
Toledo Edison will soon finish installing two underground transformers and two control boxes among other infrastructural upgrades. The unit is presently engaged in maintenance work to enhance service reliability and prevent service disruptions during the fall and winter months, when it becomes difficult to work underground.
This FirstEnergy subsidiary has an existing customer base of 300,000 in northeast Ohio. These grid enhancement projects are expected to help retain existing customers as well as bring in new ones.
The modernization drive, which is part of Toledo’s $800,000 maintenance budget for this year, includes the replacement of underground wires at several locations.
Utility operations are subject to adverse weather conditions such as cyclones and storms that can severely damage transmission lines and delivery systems. Utilities also have to weather sudden outages, physical attacks, cyber hacking, and normal wear and tear resulting from years of usage. As a result, these companies are scaling up maintenance investment to minimize energy loss from infrastructural damage, thereby ensuring better service reliability and customer service.
Last week, three other units of FirstEnergy announced investments to modernize the electric system and thereby improve service reliability (Read: FirstEnergy’s (FE - Free Report) Units on Infrastructure Upgrade Drive)
Utility companies benefit significantly from the regulated nature of their business, which allows a high degree of certainty to their top lines. Additionally, their businesses are domestically inclined which protects them from adverse changes in foreign currency. The Dow Jones Utility Average (DJU) is up 25.5% year to date (till Jul 11, 2016).
The demand for utility services varies with economic cycles. However, their fortunes do not oscillate in tandem with the economic cycles since these companies deal with basic amenities and cannot ever go out of business.This also enables them to give out consistent dividends, making them attractive bets among investors.
Zacks Rank& Stocks to Consider
FirstEnergy currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the utility space include Black Hills Corporation (BKH - Free Report) with a Zacks Rank #1 (Strong Buy) and Alliant Energy Corporation (LNT - Free Report) and DTE Energy Company (DTE - Free Report) , both carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
FirstEnergy (FE) Focused on Improving Service Reliability
An affiliate of diversified energy company FirstEnergy Corporation (FE - Free Report) , Toledo Edison announced that it has made investments in the infrastructural improvement of its electric distribution system.
Details of the Project
Toledo Edison will soon finish installing two underground transformers and two control boxes among other infrastructural upgrades. The unit is presently engaged in maintenance work to enhance service reliability and prevent service disruptions during the fall and winter months, when it becomes difficult to work underground.
This FirstEnergy subsidiary has an existing customer base of 300,000 in northeast Ohio. These grid enhancement projects are expected to help retain existing customers as well as bring in new ones.
The modernization drive, which is part of Toledo’s $800,000 maintenance budget for this year, includes the replacement of underground wires at several locations.
Utility operations are subject to adverse weather conditions such as cyclones and storms that can severely damage transmission lines and delivery systems. Utilities also have to weather sudden outages, physical attacks, cyber hacking, and normal wear and tear resulting from years of usage. As a result, these companies are scaling up maintenance investment to minimize energy loss from infrastructural damage, thereby ensuring better service reliability and customer service.
Last week, three other units of FirstEnergy announced investments to modernize the electric system and thereby improve service reliability (Read: FirstEnergy’s (FE - Free Report) Units on Infrastructure Upgrade Drive)
FIRSTENERGY CP Price
FIRSTENERGY CP Price | FIRSTENERGY CP Quote
Sector Overview
Utility companies benefit significantly from the regulated nature of their business, which allows a high degree of certainty to their top lines. Additionally, their businesses are domestically inclined which protects them from adverse changes in foreign currency. The Dow Jones Utility Average (DJU) is up 25.5% year to date (till Jul 11, 2016).
The demand for utility services varies with economic cycles. However, their fortunes do not oscillate in tandem with the economic cycles since these companies deal with basic amenities and cannot ever go out of business.This also enables them to give out consistent dividends, making them attractive bets among investors.
Zacks Rank& Stocks to Consider
FirstEnergy currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the utility space include Black Hills Corporation (BKH - Free Report) with a Zacks Rank #1 (Strong Buy) and Alliant Energy Corporation (LNT - Free Report) and DTE Energy Company (DTE - Free Report) , both carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>