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FirstEnergy (FE) Stock Analysis

Utilities Updated August 18, 2026
$47.42
52W $42.73 – $52.34
53/100
$27.43B
25.3
0.45
AI Committee Verdict
Watch
53/100
Conviction: Contested · 50% agreement · 6 analysts
+0.6%
-7.4%
0.08:1
Contested

Is FE Bullish or Bearish?

Mixed. Innellis AI committee rates FirstEnergy (FE) Watch with a composite score of 53/100 , based on 6 analysts with 50% agreement. Last updated August 18, 2026.

What Would Change This View

Upgrade to Buy
Requires a committee score of 60.0 — +7.35 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Reduce
Requires the score to fall below 40.0 — -12.65 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. Macro Analyst sees a compelling case — vix regime is low -- calm backdrop supports risk-taking. Growth Analyst remains cautious — eps declining -17.2% yoy despite any revenue growth. This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • Dividend yield of 3.9% pays you to wait — Value
  • VIX regime is low -- calm backdrop supports risk-taking — Macro
  • News sentiment is positive (+0.40 across 5 articles, 14d) — News
Bear Case
  • P/E of 25.2 is moderate-to-rich — Value
  • Debt-to-equity of 2.12 adds balance-sheet risk to the value case — Value
  • EPS declining -17.2% YoY despite any revenue growth — Growth
  • 3 consecutive earnings misses -- execution concerns — Growth
  • Growth rate is decelerating quarter over quarter -- the trend line matters more than the level — Growth
  • MACD histogram negative -- bearish momentum — Technical
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of August 18, 2026
Overall Committee Score
53/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 76%
of 56 Utilities peers
Value Analyst neutral
43 / 100 · Moderate confidence
Fair value -- neither a bargain nor obviously overpriced
+ Dividend yield of 3.9% pays you to wait
− P/E of 25.2 is moderate-to-rich
Growth Analyst bearish
29 / 100 · High confidence
Growth story is weak, decelerating, or inconsistent
− EPS declining -17.2% YoY despite any revenue growth
Technical Analyst neutral
48 / 100 · High confidence
Mixed or range-bound price action
− MACD histogram negative -- bearish momentum
Risk Analyst neutral
45 / 100 · Moderate confidence
Moderate risk -- no single red flag, but nothing that clearly de-risks the position either
− High leverage (debt-to-equity 2.12) amplifies downside in a stress scenario
Macro Analyst bullish
80 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ VIX regime is low -- calm backdrop supports risk-taking
News Analyst bullish
70 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.40 across 5 articles, 14d)
Portfolio Manager neutral
45 / 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2963.04)
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Investment Thesis Evolution

Committee score moved marginally from 52.6 to 52.6.

Comparing 2026-08-17 to 2026-08-18 (1 day apart).

Technical Analysis

RSI (14)
44.5
Neutral
MACD Histogram
-0.211
Bearish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Mixed
Support
$43.89
Resistance
$47.70
Bollinger %B
0.29
Inside Bands
Price vs Moving Averages
EMA 9
$47.39 Above
EMA 21
$47.82 Below
EMA 50
$47.84 Below
EMA 200
$47.04 Above

Fundamental Analysis

Valuation
83
Growth
24
Profitability
44
Financial Health
6
Cash Flow
70
Valuation
P/E Ratio 25.3×
P/B Ratio 2.12×
PEG Ratio -1.50
Dividend Yield 3.84%
52W High $52.34
52W Low $42.73
Quality & Growth
ROE 815.3%
ROA 182.5%
Gross Margin 5342.8%
Operating Margin 1856.6%
Revenue Growth YoY
Debt / Equity 2.24
AI Fundamental Assessment
P/E ratio of 25.3 (moderate relative to a 15-40x range); Price-to-book of 2.1x; PEG ratio of -1.5 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 8.2%; Return on assets of 1.8%; Net margin of 6.9%; Gross margin of 53.4%; Current ratio of 0.54 (tight short-term liquidity); Debt-to-equity of 2.24; Free cash flow per share is positive (2.73); Most recent quarter missed estimates by 3.9%; 3 consecutive earnings misses; EPS growth decelerating (+35.8% -> -30.6% QoQ); Average YoY EPS growth of -3.9%; Analyst estimates falling over recent quarters
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Explore FE Further

📈 Rating History 💰 Earnings 📰 Recent Events 🔄 What Changed 📖 Thesis Evolution 🔍 Similar Stocks
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