FirstEnergy Corp (FE): Today's Highlighted Winner For Utilities

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

FirstEnergy ( FE) pushed the Utilities sector higher today making it today's featured utilities winner. The sector as a whole closed the day up 1%. By the end of trading, FirstEnergy rose 47 cents (1.1%) to $45.18 on light volume. Throughout the day, 2.6 million shares of FirstEnergy exchanged hands as compared to its average daily volume of 3.5 million shares. The stock ranged in a price between $44.77-$45.39 after having opened the day at $44.85 as compared to the previous trading day's close of $44.71. Other companies within the Utilities sector that increased today were: Energy Company of Minas Gerais ( CIG), up 3.5%, China Hydroelectric Corporation ( CHC), up 3.4%, Southcross Energy Partners ( SXE), up 3.1%, and American DG Energy ( ADGE), up 3.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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. FirstEnergy has a market cap of $18.57 billion and is part of the utilities industry. The company has a P/E ratio of 24.1, above the S&P 500 P/E ratio of 17.7. Shares are up 7.1% year to date as of the close of trading on Tuesday. Currently there are two analysts that rate FirstEnergy a buy, one analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates FirstEnergy as a hold. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the utilities sector could consider Utilities Select Sector SPDR ( XLU) while those bearish on the utilities sector could consider ProShares UltraShort Utilities ( SDP).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100% See his top picks for 14-days FREE.
null

If you liked this article you might like

Exxon, Thermo Fisher and 2 More Are Showing Red Flags

Exxon, Thermo Fisher and 2 More Are Showing Red Flags

Market Recon: Most Unusually, We're Seeing Safe Haven Investing

FirstEnergy Is Not Long For Nuclear Power

How's This for a Black Friday Deal?