Here's Why You Should Include FirstEnergy Stock in Your Portfolio Now

Core Insights - FirstEnergy Corp. (FE) is positioned as a strong investment opportunity within the Zacks Utility Electric Power industry due to its extensive transmission and distribution operations and ongoing investments aimed at enhancing grid reliability and service efficiency [2] Growth Outlook & Financial Performance - The Zacks Consensus Estimate for FE's 2025 earnings per share (EPS) has increased by 0.4% to $2.54 over the past 30 days [3] - The revenue estimate for FE in 2025 is projected at $14.4 billion, reflecting a growth of 6.9% compared to the reported figure for 2024 [3] - FE's long-term earnings growth rate is estimated at 6.46%, with an average earnings surprise of 5.15% over the last four quarters [3] Return on Equity - FE's return on equity (ROE) stands at 11.15%, surpassing the industry average of 9.64%, indicating more effective utilization of funds compared to peers [4] Investment Strategy - The company has planned $28 billion in capital spending for the period 2025-2029, aimed at modernizing and reinforcing its transmission and distribution infrastructure [6] - Strategic investments are expected to enhance service efficiency for FE's six million customers, contributing to rate base growth in Regulated Distribution [5] Shareholder Returns - FE has been consistently enhancing shareholder value through dividends, with a revised policy targeting a payout ratio of 60-70% [7] - The current quarterly dividend is 44.5 cents per share, leading to an annualized dividend of $1.78 and a dividend yield of 3.76%, which is significantly higher than the Zacks S&P 500 Composite's average of 1.49% [7] Solvency - FE's times interest earned (TIE) ratio at the end of Q3 2025 is 2.6, indicating a strong capacity to meet long-term debt obligations [8][10] Stock Performance - Over the past six months, FE shares have increased by 15%, outperforming the industry's growth of 13.1% [11]