Mild Weather Mars FirstEnergy’s Q2 Earnings
Electric utility company FirstEnergy (FE) released its second-quarter earnings results on July 23. It reported adjusted EPS of $0.61.
Why Top Utility Stocks Look Expensive
NextEra Energy (NEE) stock is trading at 22 times its forward earnings, way beyond peers’ average.
NRG, EIX, and FE: Wall Street Views and Price Targets
Very few utility (XLU) stocks offer a handsome potential upside due to their recent rally. Merchant power stock NRG Energy (NRG) is one of them.
Highlights from FirstEnergy’s Q1 2019 Earnings
FirstEnergy (FE) reported adjusted earnings of $0.67 for the first quarter.
Utilities’ Ups and Downs Last Week
Utility stocks continued to underperform broader markets last week.
How Analysts View FirstEnergy Stock ahead of Its Q1 Results
Analysts have given FirstEnergy (FE) a consensus target price of $44.2 compared to its current market price of $40.2.
Why FirstEnergy Stock Looks Attractive
Based on analysts’ estimates, FirstEnergy (FE) stock has a target price of $44.0—compared to its current market price of $39.4.
FirstEnergy Stock Fell 4% on April 4
FirstEnergy (FE) stock fell 4% on April 4 after the bankruptcy court rejected a restructuring plan for the utility’s competitive segment.
PPL, FE, and EIX: Analysts’ Views and Price Targets
In this article, we’ll discuss analysts’ views and price targets on relatively cheap utility stocks from a valuation perspective.
Not All Utility Stocks Are Trading at a Premium
Utility stocks as a whole are trading at a forward PE multiple of ~18x, higher than their historical average.
Which Utility Stocks Received a Higher Target Price Last Week?
Exelon (EXC) has a median target price of $49.9 for the next 12 months. UBS raised Exelon’s target price from $53.0 to $56.0 last week.
FirstEnergy, Xcel Energy, and PPL: Analysts’ Recommendations
According to analysts’ estimates, FirstEnergy (FE) stock has a target price of $42.33 compared to its current market price of $40.42.
FirstEnergy’s Chart Indicators and Short Interest
FirstEnergy is trading at $40.4, which is ~4% and 8% above its 50-day and 200-day moving average levels, respectively.
Analyzing FirstEnergy’s Dividend Profile
FirstEnergy offers a dividend yield of 3.7%, which is higher than utilities’ average yield of 3.2%. FirstEnergy’s five-year average yield is ~4.3%.
FirstEnergy’s Valuation Compared to Its Peers
FirstEnergy (FE) stock was one of the top performers among utilities last year. In the last 12 months, the stock has risen ~25%.
How’s FirstEnergy Stock Placed Compared to Its Peers?
FirstEnergy’s (FE) increased focus on regulated operations helped the company. In 2018 FirstEnergy’s earnings increased ~19% compared to 2017.
AEP, FE, EXC, and XEL: Analyst Views and Price Targets
Let’s take a look at utility stocks that received a price target raise last week. We’ll look at Exelon (EXC) first.
FirstEnergy Stock: What Can Investors Expect?
FirstEnergy (FE) stock is trading close to its 52-week high. The stock continues to look strong based on its simple moving average levels.
Utility Stocks Received a Target Price Change Last Week
Analysts seem to be cautious about Xcel Energy stock. RBC raised Xcel Energy’s target price from $49.0 to $53.0 on January 18.
Which Utility Stocks Might Be a Good Bargain?
Sempra Energy (SRE), the largest utility by market cap in California, is trading at a forward PE ratio above 18x based on the EPS estimates for 2019.
Analyzing FE, XEL, and AEP’s Current Valuation
FirstEnergy stock seems to have an attractive valuation. FirstEnergy has a lower valuation multiple than its historical average and peers’ average.
Analysts Are Cautious on FirstEnergy but Expect a Robust Gain
Of the 18 analysts tracking FirstEnergy (FE), eight recommend “buy,” six recommend “hold,” and four recommend “strong buy.”
What FirstEnergy’s Chart Indicators Suggest
Utilities have been following a downtrend recently, plummeting more than 10% since early last week.
NRG, AES, and FE: Is There Any Steam Left?
FirstEnergy (FE) stock offers a potential upside of 3% based on analysts’ median target price of $40.4. Currently, FirstEnergy is trading at $39.2.
A Look at PPL’s Q3 2018 Earnings and Growth Prospects
PPL Corporation (PPL) is expected to report EPS of $0.56 for the third quarter.
FirstEnergy’s Valuation after Its Q3 2018 Earnings
Currently, FirstEnergy stock is trading at a forward PE multiple of 14.8x—lower than peers’ average forward PE multiple of over 17x.
Comparing FirstEnergy’s Returns with Its Peers
Currently, FirstEnergy is trading at a dividend yield of 3.8%. The company is expected to pay an annualized dividend of $1.44 per share in 2018.
PPL Stock: Analysts’ Recommendations and Target Price
PPL stock has a median target price of $31.27 compared to its current market price of $29.56—an estimated upside of ~6% for the next 12 months.
These Top Utilities Received Target Price Raises Last Week
Almost all utility stocks currently offer unattractive upside potentials due to their recent rallies.
How Institutional Investors Played FirstEnergy in Q2 2018
Nuveen LLC added ~2.0 million shares of FirstEnergy and increased its stake to 2.6% on June 30.
FirstEnergy Reported Higher Q2 2018 Earnings Due to the Weather
FirstEnergy reported its second-quarter financial results on July 31 after the markets closed. The company reported an adjusted EPS of $0.62.
How FirstEnergy Stock Is Valued Compared to Its Peers
FirstEnergy (FE) stock is currently trading at an EV-to-EBITDA valuation multiple of 8.1x, which is lower than its five-year average of 9.0x.
FirstEnergy’s Price Targets and Analysts’ Recommendations
According to Wall Street analysts, FirstEnergy (FE) stock has a mean target price of $37.50. Its current market price is $36.50.
Utilities Continued to Rise, Trade War Fears Hit the Markets
The Utilities Select Sector SPR ETF (XLU) continued its uptrend for the sixth consecutive day and rose 1.7% on June 25.
FirstEnergy Stock Looks Attractively Valued Compared to Peers
FirstEnergy (FE) stock is currently trading at an EV-to-EBITDA valuation multiple of 8.0x, which is lower than its five-year historical average of 9.0x.
How FirstEnergy Stock Is Currently Valued
FirstEnergy (FE) stock has soared more than 15% in the last three months, significantly outperforming broader utilities (XLU).
XLU: How US Utility Stocks Fared Last Week
US utility stocks continued to recover last week after being weak for more than three months. The Utilities Select Sector SPDR ETF (XLU) rose almost 3%.
FirstEnergy Stock’s Current Valuation
FirstEnergy (FE) stock is currently trading at an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) valuation of 8.4x.
How FirstEnergy Stock Ranks against Peers
FirstEnergy (FE) has been one of the top-performing stocks among the S&P 500 Utilities Index (XLU) this year.
Exelon Stock’s Current Valuation: What You Need to Know
Exelon Corporation (EXC) is currently trading at an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) valuation multiple below 8.0x.
Exelon’s Price Targets and Wall Street’s Opinion
In this series, we’re analyzing analysts’ favorite stocks from the S&P 500 Utilities Index (XLU). We’ll look at Exelon (EXC) in this part.
NRG Energy’s Target Price after Its 4Q17 Earnings
NRG Energy (NRG) stock has a mean target price of $33.25, which indicates an upside potential of more than 23% for the next 12 months.
FirstEnergy: Analysts’ Views and Price Targets
According to Wall Street analyst consensus, FirstEnergy (FE) stock has a mean price target of $36.20 against its current market price of $32.80.
Assessing NextEra Energy’s 4Q17 Earnings and Growth Prospects
According to analysts’ estimates, NextEra Energy (NEE) will report EPS (earnings per share) of $1.31 for the quarter ended December 31, 2017.
How FirstEnergy’s Dividend Yield Compares to Peers
Currently, FirstEnergy (FE) is one of the top-yielding utilities among the S&P 500 Utilities (XLU).
Analyzing AES’s Dividend Yield and Valuation
AES (AES), a competitive utility, is trading at a dividend yield of 4.7%—compared to broader utilities’ average yield of 4.4%.
Looking at FirstEnergy’s Price Targets and Analyst Views
According to analysts’ consensus, FirstEnergy stock has a mean price target of $36.2, which indicates an implied gain of 19% over the next 12 months.
Why SCANA Stock Offers Decent Upside Potential
According to Wall Street analysts, SCANA Corporation (SCG) stock has an expected upside of nearly 22% in a year. It has a mean price target of $47.44 against its current market price of $39.0.
FirstEnergy Stock Trading in the Oversold Zone
While utilities have been on a losing spree lately, competitive utility stock FirstEnergy (FE) seems even weaker. It has lost more than 12% so far this month.
FirstEnergy Stock: Analyzing Its Current Valuation
On December 14, 2017, FirstEnergy (FE) stock was trading at an EV-to-EBITDA multiple of 8.5x. Its five-year historical valuation is ~9.5x.
AES Stock Offers Decent Upside Potential
AES (AES) has upside potential of 19% from its current price levels of $10.9. Wall Street analysts have given it a price target of $12.9.
What FirstEnergy’s Implied Volatility Indicates
On November 8, 2017, FirstEnergy (FE) stock had an implied volatility of 15%. It was lower than its 15-day average implied volatility.
FirstEnergy’s Current Valuation Compared to Its Peers
On November 8, FirstEnergy stock was trading at an EV-to-EBITDA valuation multiple of 8.5x. Its five-year historical valuation average is close to 9.0x.
AES Has Paid Attractive Dividends: Can It Continue?
At $7.0 billion, AES is one of the smallest utilities among the S&P 500 Utilities (XLU). Its dividend growth in the last few years has been remarkable.
AES Stock: Analysts’ Recommendations and Target Price
According to Wall Street analysts’ estimates, AES (AES) stock has a mean target price of $12.84—compared to its current market price of $10.51.
How AES Stock Is Valued Compared to Its Peers
AES stock looks to be trading at a discounted valuation compared to its peers. However, it seems to be trading at a fair premium to its historical average.
Will Strong Crude Oil Prices Affect Coal Producers?
On October 20, 2017, WTI (West Texas Intermediate) crude oil prices closed at $51.47 per barrel.
Behind FirstEnergy’s Price Targets and Analyst Views
FirstEnergy stock offers a potential gain of 10% over the next year. The stock has a mean price target of $34.47, compared with its current market price of $31.38.
These SPX Utilities Are Trading Cheap Compared to Peers
On average, utilities are trading at an EV-to-EBITDA valuation multiple of 11x—higher than their historical average EV-to-EBITDA ratio of 9x.
These SPX Utilities Could Gain You More than 10% from Here
US utilities have risen nearly 12% year-to-date and surpassed broader markets. Very few utility stocks offer handsome potential upside going forward.
Behind Exelon’s Dividend Profile
Although Exelon offers a modest dividend yield of 3.5%—similar to the utility average—its dividend growth over the past five years has fallen 9.6%.
How Exelon Is Looking amid Mounting Challenges?
Exelon (EXC), the largest competitive utility in the country, has outperformed broader utilities in the past year and is trading at a yield similar to peers.
Analyzing the 10 Top-Yielding SPX Utility Stocks
The Utilities Select Sector SPDR ETF (XLU), which represents the S&P 500 Utilities Index, currently yields 3.5%. In this series, we’ll discuss the top ten highest-yielding utility stocks from the S&P 500 Utilities Index.
Looking at Recent Changes in FirstEnergy’s Institutional Ownership
There has been a remarkable rally in FirstEnergy stock since May 2017.
Why FirstEnergy Stock Is Trading at a Deep Discount
Very few utility stocks from the S&P 500 Utilities Index (XLU) are currently trading at a fair valuation.
Which Utility Stock Is Best among the Top-Yielding SPX Utilities?
Credit Suisse upgraded SO’s rating from “underperform” to “neutral” on August 3, 2017. It also modified its price target from $49.0 to $50.0.
Why Utility Implied Volatility Matters
On August 9, 2017, Southern Company (SO) stock had an implied volatility of 11.6%, which is marginally lower than its 15-day average of 12.6%.
Understanding Utilities’ Chart Indicators: SO, ETR, and FE
Southern Company’s (SO) 50-day MA has crossed below its 200-day MA, which can be considered as a negative sign.
How SO, ETR, and FE Utilities Have Performed Recently
In the past year, XLU has risen ~7%, while Southern Company (SO) fallen 7%, and FirstEnergy (FE) and Entergy (ETR) have corrected by 3% apiece.
Are the Top-Yielding Utilities Really Worth the Risk?
Utilities are the highest-yielding equities, with their yields surpassing that of the SPDR S&P 500 ETF (SPY) by more than 100 basis points.
How Exelon Stock Has Performed Recently
Exelon Corporation (EXC) stock has been rallying over the last few trading sessions, and it hit a 52-week high of $37.76 on July 21, 2017.
Analysts Expect Decent Upside for FirstEnergy
Though FirstEnergy stock currently looks to be trading at a discount, its earnings volatility might make it less attractive for utility investors.
NEE Has One of the Cleanest Generation Mixes in the US
NextEra Energy (NEE) has one of the cleanest generation mixes among peers.
What’s the Outlook for Nuclear Power Utility Stocks?
Among the four utility stocks under consideration in this series, FirstEnergy (FE) seems to offer the highest possible upside given analysts’ price targets.
FE, D, EXC, or ETR: Which Utility Stock Stung Investors?
Exelon (EXC) stock has corrected nearly 2% in the last year. Including dividends, its returns have come in at ~3%.
Which Utilities Are Most Exposed to Troubled Nuclear Generation?
US nuclear generation accounts for 9% of total US capacity. Its share of total power generation last year accounted for nearly 20%.
Why FirstEnergy Stock Is Cheap Compared to Peers
FirstEnergy stock has been in a downtrend for several years—which could be why it’s trading at such a deep discount to its historical and industry averages.
Inside FirstEnergy Stock Today: What the Analysts Think
FE has an estimated upside of 16%, with a price target of $33.53, as compared to its current market price of $28.91.
EXC, FE, and PEG: Analysts Seem to Be Positive on Exelon
Hybrid utility stocks are currently offering very attractive potential upsides compared to utilities at large.
Why Hybrid Utilities’ Yields Might Be Misleading
Hybrid utility FirstEnergy (FE) is presently trading at one of the highest dividend yields of 4.9%.
EXC, FE, and PEG: Is Leverage a Concern for Competitive Utilities?
Exelon’s (EXC) leverage ratio is about 3.8x. The industry average stands around 3.5x–4.0x.
Which Utility Has Posted the Most Revenue Growth?
With a $34 billion market capitalization, Exelon (EXC) is the largest competitive utility.
Total Returns: Exelon Beat Peers by a Fair Margin
Exelon (EXC) has outperformed peers in terms of total returns in the last 12 months.
EXC, FE, and PEG: Are Hybrid Utilities Really Worth the Risk?
US utilities including giants like Duke Energy (DUK) and Southern Company (SO) have done fairly well in the last few months compared to broader markets.
DUK, AWK, FE: Why These Utility Stocks Are in Focus
NRG Energy (NRG) has risen 23.1% in the past year, the most among high-volatility utility stocks.
Factors That Could Drive FirstEnergy’s 1Q17 Earnings
FirstEnergy (FE) is estimated to report earnings of $0.74 per share for the quarter ended March 31, 2017. For 1Q16, FirstEnergy reported earnings of $0.80 per share.
Is FirstEnergy Stock Fairly Valued?
FirstEnergy (FE) appears to be trading at a fair valuation compared to its peers. Currently, it’s trading at an EV-to-EBITDA ratio of 7.7x.
Huge Rise in FirstEnergy’s Short Interest: What It Means
Short interest in FirstEnergy rose more than 17% on March 15, 2017. Total shorted shares in the company were 8.7 million on February 28, 2017.
Is It a Good Time to Enter FirstEnergy?
Chart indicators Let’s look at FirstEnergy’s (FE) chart indicators. On March 16, 2017, FirstEnergy stock was trading 1.5% above and 5% below its 50-DMA (day moving average) and 200-DMA, respectively. The stock failed to maintain gains in the recent past which could be concerning for investors. Its 50-DMA may act as support in the short […]
What Investors Should Know about Duke Energy’s Dividends
Duke Energy’s (DUK) dividend growth hasn’t been the best in the US utility industry, but its premium yield of 4.5% is among the highest.
Utilities Dominated the Market for the Second Consecutive Day
On February 23, 2017, the S&P 500 Utilities Sector surged and closed at its highest level since September 27, 2016.
These Factors Drove FirstEnergy’s Revenues in 4Q16
FirstEnergy stock rose 1% and closed at $31.33 on its earnings day. The stock has seen some positive momentum during the last few trading sessions.
Exelon’s Price Target after Its 4Q16 Earnings
Exelon has a mean price target of $38.45, as compared to its current market price of $35.23—an estimated one-year upside of ~9%.
Inside Exelon’s Long-Term Growth Outlook
Exelon issued a flat to negative earnings outlook for 2017, though its rate base is expected to rise 6.5% annually through 2020.
Utility Stocks: Analyzing Returns and Implied Volatilities
PPL rose the least in the past year among the list of low implied volatility utility stocks. It announced its 4Q16 financial results on February 1.
Exelon’s Expected 4Q16 Earnings and Growth Prospects
According to analysts’ estimates, Exelon (EXC) is expected to report earnings of $0.45 per share in 4Q16. In 4Q15, it posted earnings of $0.38 per share.
Will Exelon Beat Analysts’ Revenue Estimates in 4Q16?
Exelon will report its 4Q16 and fiscal 2016 financial results on February 8, 2017. Analysts expect it to report total revenues of $7,488 million for 4Q16.
FirstEnergy Stock Approaching the Oversold Zone
The FirstEnergy (FE) stock has been trading near its 52-week low for the past several trading sessions, and it has corrected more than 6% in the past month.
Analyzing Utility Stocks’ Implied Volatilities
On January 11, 2017, NRG Energy had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF (XLU).
EXC, FE, and PEG: A Look at Utilities’ Dividend Growth
FirstEnergy’s (FE) dividends fell 13% annually in the last five years. In 2014, FE cut its quarterly dividends from $0.55 per share to $0.36 per share.