Akron, Ohio-based FirstEnergy Corp. (FE) generates, distributes, and transmits electricity in the U.S. Valued at a market cap of $23.8 billion, the company owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power generating facilities and serves customers in various states, including Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York. 

Shares of this utility company have lagged behind the broader market over the past 52 weeks. FE has gained 3.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 12.7%. However, on a YTD basis, the stock is up 3.7%, outpacing SPX’s marginal rise. 

Narrowing the focus, FE has also underperformed the Utilities Select Sector SPDR Fund’s (XLU) 11.8% uptick over the past 52 weeks and 5.2% return on a YTD basis. 

Shares of FE closed down marginally on the following day after its Q1 earnings release on Apr. 23, despite delivering a better-than-expected performance. Both its revenue of $3.8 billion and adjusted EPS of $0.67, handily surpassed the consensus estimates. Moreover, its top-line advanced 14.5% from the year-ago quarter, while its core earnings improved 36.7% year-over-year. Impact of new base rates in Pennsylvania, West Virginia and New Jersey, lower financing costs, and normal weather-related demand favoured the company. 

Additionally, FE reaffirmed its fiscal 2025 core earnings guidance range of $2.40 to $2.60 per share, and maintained its 6% to 8% targeted compound core earnings growth rate from 2025 through 2029. 

For the current fiscal year, ending in December, analysts expect FE’s EPS to decline 3% year over year to $2.55. The company’s earnings surprise history is mixed. It exceeded or met the consensus estimates in two of the last four quarters, while missing on two other occasions. 

Among the 16 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on six “Strong Buy,” one “Moderate Buy,” and nine “Hold” ratings. 

The configuration has remained fairly stable over the past three months. 

On Apr. 28, Mizuho Financial Group, Inc. (MFG) maintained a “Neutral” rating on FE and raised its price target to $43, which indicates a 4.3% potential upside from the current levels. 

The mean price target of $45.21 represents a 9.7% premium from FE’s current price levels, while the Street-high price target of $50 suggests an upside potential of 21.3%.