Here's Why You Should Add FirstEnergy Stock to Your Portfolio Now

Core Viewpoint - FirstEnergy Corporation (FE) is positioned as a solid investment option in the Utility sector due to its continuous capital investments aimed at enhancing infrastructure resilience and performance [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for FE's 2024 earnings per share (EPS) is $2.70, reflecting a year-over-year growth of 5.5% [2] - The consensus estimate for 2024 sales is $13.78 billion, indicating a year-over-year growth of 7.1% [2] - The company's long-term earnings growth rate is projected at 7% over the next three to five years [2] - FE has a positive earnings surprise history, with an average trailing four-quarter earnings surprise of 2.66% [2] Dividend Yield - FirstEnergy has a current dividend yield of 3.86%, significantly higher than the Zacks S&P 500 composite average yield of 1.24% [3] - The board approved a new dividend policy in February 2023, increasing the target payout ratio to 60-70% from the previous 55-65% [3] Return on Equity - FirstEnergy's return on equity (ROE) stands at 12.12%, surpassing the industry average of 10.42%, indicating effective utilization of shareholders' funds [4] Solvency - The time-to-interest earned ratio at the end of the second quarter was 2.11, demonstrating the company's capability to meet future interest obligations without difficulties [5] Strategic Investments - FirstEnergy's strategic investments aim to enhance service efficiency for its 6 million customers, with the "Energize365" platform focused on improving customer experience while maintaining affordability [6] - Planned investments of $26 billion between 2024 and 2028 will facilitate the installation of advanced equipment and technologies to modernize transmission and distribution infrastructure [7] Stock Performance - Shares of FirstEnergy have increased by 23.4% year-to-date, outperforming the industry's growth of 22.7% [8]