FE to Benefit From Infrastructure Upgradation & Grid Modernization

FirstEnergy Corp. FE is focusing on strengthening its infrastructure through upgrades to its transmission and distribution networks. At the same time, the company is pursuing grid modernization with a structured, long-term capital investment plan to effectively serve the needs of its growing customer base.The company’s long-term (three to five years) earnings growth rate is projected at 6.46%.TailwindsFirstEnergy successfully expanded its regulated activities and underwent a complete transition to become a fully regulated utility company in the past few years. This positions the company to capitalize on accelerating AI-driven data center expansion, both within its service territory and across the broader region.FirstEnergy is strengthening its transmission and renewable generation assets to ensure reliable power delivery during adverse weather conditions while providing emission-free electricity to customers. The company is also focused on grid modernization technologies to reduce outage frequency.FirstEnergy’s ‘Energize365’ is a multi-year grid evolution platform that serves as a significant tailwind, focusing on enhancing the customer experience and service reliability while maintaining its strong affordability position, with rates at or below those of in-state peers. The company plans a strategic, long-term capital investment of $28 billion during 2025–2029 to install advanced equipment and technologies to modernize its transmission and distribution infrastructure.HeadwindsFirstEnergy’s financial results are exposed to demand volatility, which comes from its service territory’s climate. The company’s revenue stream is cyclical in nature, experiencing peak load during the summer and winter months. Conversely, extended periods of mild weather significantly reduce residential and commercial consumption, creating periods of low demand that directly affect the company’s financial performance.Price PerformanceOver the past six months, FE shares have risen 11.4%, which beat the industry’s growth of 7.5%.Zacks Rank & Stocks to ConsiderFE currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry are The AES Corporation AES, Dominion Energy, Inc. D and NextEra Energy, Inc. NEE, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.AES, D and NEE have delivered an average earnings surprise of 14.68%, 12.72% and 4.39%, respectively, over the past four quarters.The Zacks Consensus Estimate for AES, D, and NEE’s 2025 EPS indicates year-over-year growth of 1.87%, 22.74% and 7.58%, respectively. Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report FirstEnergy Corporation (FE): Free Stock Analysis Report Dominion Energy Inc. (D): Free Stock Analysis Report The AES Corporation (AES): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks