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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

FirstEnergy

(

FE

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified FirstEnergy as such a stock due to the following factors:

  • FE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $135.7 million.
  • FE traded 444,782 shares today in the pre-market hours as of 9:18 AM, representing 10.6% of its average daily volume.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in FE with the Ticky from Trade-Ideas. See the FREE profile for FE NOW at Trade-Ideas

More details on FE:

FirstEnergy Corp., a diversified energy holding company, engages in the generation, transmission, and distribution of electricity in the United States. The company operates in Regulated Distribution, Regulated Transmission, and Competitive Energy Services segments. The stock currently has a dividend yield of 6.9%. FE has a PE ratio of 133.1. Currently there is 1 analyst that rates FirstEnergy a buy, no analysts rate it a sell, and 11 rate it a hold.

The average volume for FirstEnergy has been 4.5 million shares per day over the past 30 days. FirstEnergy has a market cap of $13.4 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.01 and a short float of 2.3% with 2.24 days to cover. Shares are down 23.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates FirstEnergy as a

hold

. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • FE, with its decline in revenue, slightly underperformed the industry average of 1.9%. Since the same quarter one year prior, revenues slightly dropped by 0.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • FIRSTENERGY CORP's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, FIRSTENERGY CORP reported lower earnings of $1.81 versus $2.13 in the prior year. This year, the market expects an improvement in earnings ($2.99 versus $1.81).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electric Utilities industry. The net income has significantly decreased by 48.7% when compared to the same quarter one year ago, falling from $425.00 million to $218.00 million.
  • The gross profit margin for FIRSTENERGY CORP is currently lower than what is desirable, coming in at 28.54%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.42% trails that of the industry average.
  • Net operating cash flow has declined marginally to $1,178.00 million or 2.96% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, FIRSTENERGY CORP has marginally lower results.

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