In the latest trading session, FirstEnergy (FE) closed at $33.39, marking a +0.21% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq gained 0.64%.
Prior to today's trading, shares of the utility company had gained 17.12% over the past month. This has outpaced the Utilities sector's gain of 8.37% and the S&P 500's gain of 3.25% in that time.
Wall Street will be looking for positivity from FE as it approaches its next earnings report date. This is expected to be November 2, 2020. On that day, FE is projected to report earnings of $0.80 per share, which would represent year-over-year growth of 5.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.91 billion, down 1.95% from the year-ago period.
FE's full-year Zacks Consensus Estimates are calling for earnings of $2.53 per share and revenue of $10.92 billion. These results would represent year-over-year changes of -1.94% and -1.06%, respectively.
Investors might also notice recent changes to analyst estimates for FE. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.28% higher. FE is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that FE has a Forward P/E ratio of 13.16 right now. This valuation marks a discount compared to its industry's average Forward P/E of 18.36.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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