FE Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
FirstEnergy Corp is not a strong buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. While the stock has some positive technical indicators and analyst sentiment, the financial performance, hedge fund selling, and lack of significant catalysts make it a better hold at this time.
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200) and a positive MACD histogram of 0.186, indicating a bullish trend. However, the RSI at 77.581 is in the neutral zone, and the stock is trading near resistance levels (R1: 50.779, R2: 51.461), suggesting limited immediate upside.
Analysts have raised price targets recently, with Morgan Stanley, Scotiabank, and Wolfe Research maintaining bullish ratings. The company's increased capex plan and potential Federal Energy Regulatory Commission transmission capex upside are positive long-term growth drivers.
Hedge funds are selling significantly, with a 4674.66% increase in selling over the last quarter. Financial performance in Q4 2025 was weak, with a net income loss of $49 million and a 117.78% drop in EPS YoY. Additionally, no significant insider or congress trading activity has been reported.
In Q4 2025, revenue increased by 19.55% YoY to $3.797 billion, but net income dropped to -$49 million, down 118.77% YoY. EPS decreased to -0.08, down 117.78% YoY, and gross margin declined to 52.75, down 5.25% YoY. This indicates strong revenue growth but poor profitability and margin performance.
Analysts are generally bullish, with recent upgrades and price target increases. Morgan Stanley raised its target to $53, Scotiabank to $56, and Wolfe Research upgraded the stock to Outperform. However, some analysts, like Mizuho and Barclays, remain cautious with Neutral ratings.
