Earnings estimates for FirstEnergy Corporation (FE - Free Report) have been revised upward in the past 90 days, reflecting analysts’ optimism in the stock. The Zacks Consensus Estimate for 2019 and 2020 earnings have inched up 1.5% and 0.4% to $2.59 and $2.45 per share, respectively, during the said period.
FirstEnergy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Let’s focus on the factors that make the company an appropriate investment option at the moment.
Earnings Surprise Trend & Long-Term Growth
FirstEnergy’s average four-quarter positive earnings surprise is 5.09%.The company’s long-term (3-5 years) earnings growth rate is pegged at 6%.
Dividend Yield & Return on Equity (ROE)
Currently, the company has a dividend yield of 3.57% compared with the Zacks S&P 500 composite’s 1.98% and the industry’s 2.95%.
FirstEnergy has an ROE of 21.90%, higher than the industry’s average of 9.63% and Zacks S&P 500 composite’s 17.70%. This indicates the company’s efficiency in utilizing shareholders’ funds.
In the past 12 months, FirstEnergy’s shares have rallied 25.3% compared with the industry’s growth of 14.6%.
Focus on Lowering Emissions
The company focuses on reducing emission levels and has taken initiatives for the same. As of December 2018, FirstEnergy achieved 62% reduction in CO2 and expects to achieve 80% later in 2019. By 2045, it aims to reduce CO2 emissions from generating fleet by at least 90%, below 2005 levels.
Other Key Picks
Some other top-ranked stocks from the same industry are Pinnacle West Capital Corp. (PNW - Free Report) , DTE Energy Co. (DTE - Free Report) and IDACORP, Inc. (IDA - Free Report) , each carrying a Zacks Rank of 2.
Pinnacle West Capital pulled off average positive earnings surprise of 4.97% in the last four quarters. The company’s long-term earnings growth is pegged at 5%.
DTE Energy came up with average positive earnings surprise of 12.24% in the last four quarters. The company’s long-term earnings growth is pegged at 6%.
IDACORP delivered average positive earnings surprise of 13.83% in the last four quarters. The company’s long-term earnings growth is pegged at 3.80%.
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