FirstEnergy Stock: Is FE Underperforming the Utilities Sector?

FirstEnergy Corp. (FE), headquartered in Akron, Ohio, generates, transmits, and distributes electricity as well as explores, produces, and distributes natural gas. Valued at $23 billion by market cap, the company owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power generating facilities, and provides energy management and other energy related services.
Companies worth $10 billion or more are generally described as 'large-cap stocks,' and FE perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the utilities - regulated electric industry. FirstEnergy's diversified presence in regulated and competitive markets balances its revenue streams. Strategic investments in transmission infrastructure boost grid reliability and support renewable energy integration, serving over 6 million customers across multiple states with a seasoned leadership team.
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Despite its notable strength, FE slipped 11.7% from its 52-week high of $44.97, achieved on Sep. 5, 2024. Over the past three months, FE stock has declined marginally, underperforming the Utilities Select Sector SPDR Fund's (XLU) 1.5% gains during the same time frame.
In the longer term, shares of FE dipped marginally on a YTD basis but climbed 3.9% over the past 52 weeks, underperforming XLU's YTD gains of 6.2% and 16.2% returns over the last year.
To confirm the bearish trend, FE has been trading below its 50-day and 200-day moving averages since early June.
On Apr. 23, FE shares closed down marginally after reporting its Q1 results. Its adjusted EPS of $0.67 topped Wall Street expectations of $0.60. The company's revenue was $3.8 billion, beating Wall Street forecasts of $3.7 billion. FE expects full-year adjusted EPS in the range of $2.40 to $2.60.
In the competitive arena of utilities - regulated electric, Duke Energy Corporation (DUK) has taken the lead over FE, showing resilience with a 6.5% gain on a YTD basis and 13.9% uptick over the past 52 weeks.
Wall Street analysts are moderately bullish on FE's prospects. The stock has a consensus 'Moderate Buy' rating from the 16 analysts covering it, and the mean price target of $45.36 suggests a potential upside of 14.2% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

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Newsweek

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• Newsweek

Graph Shows US Births Decline Over 50 Years

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The Donald Trump administration has made this issue one of its priorities, the White House exploring giving women a "baby bonus" of $5,000, according to an April New York Times report. The Birth Rate Situation In America Different age groups have been affected differently by the shift in births. While mothers between the ages of 50 and 54 had no babies in 1975, this number gradually increased to more than 100 over the years and was 159 in 2024. Conversely, teen pregnancies have drastically and consistently declined since 1975, when there were 599,926 before this number started to go down in the early 2000s, to 136,376 in 2024. The issue with a lower number of births, taking place while the elderly live longer, means that is that the country is headed for a time when there are more elderly, dependent people than there are working-age people. At the beginning of this year, a report by the McKinsey Global Institute warned that major economies are heading toward a "population collapse" by 2100 because of falling fertility rates. Trump said during a speech in December: "We want more babies, to put it nicely." Many trying to tackle this issue have focused on public health policies and financial plans, often citing the 2008 financial crisis, its effect on housing, inflation and pay as a major contributor to why people delay having children, have fewer of them or to not have them at all. Parental leave, improved childcare services, and financial independence in general are all things advocates call for in the hopes of making it easier for people to have children. Earlier this month, Trump announced a $1,000 tax-deferred investment account for American babies born during his second term. The White House said the so-called "Trump Accounts" will "afford a generation of children the chance to experience the miracle of compounded growth and set them on a course for prosperity from the very beginning." Meanwhile, the United States could make childbirth free for privately insured families, in an effort to tackle declining birth rates. The bipartisan Supporting Healthy Moms and Babies Act, which would designate maternity care as an essential health benefit under the Affordable Care Act, was introduced in the Senate in May. Beth Jarosz, a senior program director of U.S. programs at the Population Reference Bureau, said that "reducing health care costs is important, but may not be enough to move the needle on births." "The cost of childbirth is just one of the many costs of having a child, and people are also reeling from the much bigger costs of child care, housing, and other necessities," she told Newsweek. Culture's Impact On America's Birth Rates However, while financial concerns are generally accepted as a major contributor to declining birth rates, they are not the lone cause. Bell said that even the policies she calls for "are also unlikely to increase the birth rate, as evidence from other countries with much more supportive policies suggest." Norway is considered a global leader in parental leave and child care policies, and the United Nations International Children's Fund (UNICEF) ranks it among the top countries for family-friendly policies. But it, too, is facing a birth rate crisis. The Nordic country offers parents 12 months of shared paid leave for birth and an additional year each afterward. It also made kindergarten (similar to a U.S. day care) a statutory right for all children aged 1 or older in 2008. And yet, Norway's fertility rate has dropped dramatically from 1.98 children per woman in 2009 to 1.44 children per woman in 2024, according to official figures. The rate for 2023 (1.40) was the lowest ever recorded fertility rate in the country. Newsweekspoke to several experts about Norway specifically, who all cited recent culture changes. Photo-illustration by Newsweek/Getty For example, "young adults are more likely to live alone" and "young couples split up more frequently than before," Rannveig Kaldager Hart, a senior researcher at the Norwegian Institute of Public Health's Centre for Fertility and Health, said. American Vice President JD Vance touched on cultural changes when he said in January: "We failed a generation not only by permitting a culture of abortion on demand but also by neglecting to help young parents achieve the ingredients they need to lead a happy and meaningful life. "Our society has failed to recognize the obligation that one generation has to another as a core part of living in a society. So let me say very simply, I want more babies in the United States of America."

Yahoo

an hour ago

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Social Security's 2026 Cost-of-Living Adjustment (COLA) Estimate Is Getting a "Trump Bump" -- Here's How Much Extra You Might Receive

As many as nine out of 10 retirees rely on their Social Security income to cover some portion of their expenses. Estimates for Social Security's 2026 cost-of-living adjustment (COLA) are climbing, and President Trump's tariff and trade policy looks to be the culprit. Though an above-average COLA for a fifth-consecutive year would be welcome on paper, retirees continue to get the short end of the stick when it comes to annual raises. The $23,760 Social Security bonus most retirees completely overlook › Last month, Social Security's retired-worker benefit made history, with the average payout topping $2,000 for the first time since the program's inception. Although this represents a modest monthly benefit, it's nevertheless proved vital to helping aging workers cover their expenses. In each of the prior 23 years, pollster Gallup surveyed retirees about their reliance on the Social Security income they're receiving. Between 80% and 90% of respondents noted it was a "major" or "minor" income source. In other words, only around one in 10 retirees could, in theory, make do without their Social Security check. For an overwhelming majority of Social Security beneficiaries, nothing is more important than knowing precisely how much they'll receive each month -- and that begins with the program's annual cost-of-living adjustment (COLA), which is announced during the second week of October. This year's COLA announcement will be of particular interest, with President Donald Trump's tariff and trade policies expected to directly affect how much Social Security beneficiaries will receive per month in 2026. But before digging into the specifics of how President Trump's policies are expected to impact the pocketbooks of seniors, survivors, and workers with disabilities, it's important to understand the building blocks of what Social Security's COLA is and why it matters. The program's COLA is effectively the "raise" passed along on a near-annual basis that accounts for the impact of inflation (rising prices) on benefits. For example, if a large basket of goods and services increased in cost by 3% from one year to the next, Social Security benefits would need to climb by a commensurate amount, or buying power for Social Security recipients would decrease. In the 35 years following the issuance of the first retired-worker check in January 1940, COLAs were assigned at random by special sessions of Congress. Only a total of 11 COLAs were passed along during this timeline, with no adjustments made in the 1940s. Beginning in 1975, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was adopted as Social Security's inflationary measure that would allow for annual cost-of-living adjustments. The CPI-W has over 200 spending categories, each of which has its own unique percentage weighting. These weightings are what allow the CPI-W to be expressed as a single figure each month, which leads to crisp month-to-month and year-to-year comparisons to see if prices are, collectively, rising (inflation) or declining (deflation). When calculating Social Security's COLA, only CPI-W readings from the third quarter (July through September) are taken into consideration. If the average CPI-W reading in the third quarter of the current year is higher than the comparable period of the previous year, inflation has occurred, and beneficiaries are due for a beefier payout. Following a decade of anemic raises in the 2010s -- three years during the decade (2010, 2011, and 2016) saw no COLA passed along due to deflation -- beneficiaries have enjoyed four consecutive years of above-average cost-of-living adjustments and are hoping for this streak to continue. A historic increase in U.S. money supply during the COVID-19 pandemic sent the prevailing rate of inflation soaring to a four-decade high. This resulted in COLAs of 5.9% in 2022, 8.7% in 2023, 3.2% in 2024, and 2.5% in 2025, respectively. For context, the average annual increase in benefits since 2010 is 2.3%. While estimates for Social Security's 2026 cost-of-living adjustment came in below this average shortly after President Donald Trump took office for his nonconsecutive second term, the script has now been flipped. Nonpartisan senior advocacy group The Senior Citizens League (TSCL) was forecasting a 2.2% COLA for 2026 as recently as March. Meanwhile, independent Social Security and Medicare policy analyst Mary Johnson, who retired from TSCL last year, was calling for a 2.2% increase in April following the release of the March inflation report from the U.S. Bureau of Labor Statistics (BLS). After the release of the May inflation report from the BLS, both TSCL and Johnson are now forecasting a 2026 COLA of 2.5%. A 2.5% COLA would increase the average retired-worker benefit by $50 per month next year, as well as lift monthly checks for the typical worker with disabilities and survivor beneficiary by $40 and $39, respectively. This 0.3% increase in both forecasts over the past couple of months is estimated to boost the average Social Security payout (for all beneficiaries) by approximately $5.57 per month in 2026. This "Trump bump" is the result of the president's tariff and trade policies having a very modest inflationary impact on domestic prices. Charging a global import duty on all countries while imposing higher "reciprocal tariff rates" on dozens of countries that have historically run adverse trade imbalances with the U.S. can result in these higher costs being passed along to consumers. Though a lot can change with Trump's tariff and trade policy in the coming weeks and months, its current design points to a modest bump in the 2026 COLA. On paper, a fifth consecutive year where COLAs are above average (compared to the previous 16 years) probably sounds great. With the average retired-worker payout cresting $2,000 per month, an added $50 per month would be welcome in 2026. But the fact of the matter is that a 0.3% bump in COLA estimates since Trump introduced his tariff and trade policy doesn't remotely move the needle when it comes to what retirees have been shortchanged for more than a decade. Though the CPI-W is designed to be an all-encompassing measure of inflation, it has an inherent flaw that can be seen in its full name. Specifically, it tracks the spending habits of "urban wage earners and clerical workers," who, in many instances, are working-age Americans not currently receiving a Social Security benefit. Urban wage earners and clerical workers spend their money very differently than seniors. Whereas the former has a higher percentage of their monthly budgets devoted to things like education, apparel, and transportation, seniors spend a higher percentage on shelter and medical care services. Even though an overwhelming majority of Social Security beneficiaries are aged 62 and above, the CPI-W doesn't factor in this added importance of shelter and medical care services inflation. The end result for retirees has been a persistent decline in the buying power of a Social Security dollar. According to a study conducted by TSCL, the purchasing power of a Social Security dollar has dropped by 20% since 2010. A very modest "Trump bump" isn't going to offset this. What's more, the aforementioned two costs that matter most to retirees -- shelter and medical care services -- have had higher trailing-12-month (TTM) inflation rates than the annually issued Social Security COLA. The BLS inflation report for May showed TTM increases of 3.9% for shelter and 3% for medical care services, respectively. As long as the program's cost-of-living adjustment trails the annual inflation rate for these two key expenses, retirees will continue getting the short end of the stick. If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these Motley Fool has a disclosure policy. Social Security's 2026 Cost-of-Living Adjustment (COLA) Estimate Is Getting a "Trump Bump" -- Here's How Much Extra You Might Receive was originally published by The Motley Fool

Miami Herald

2 hours ago

• Miami Herald

Europe's growing fear: How Trump might use US tech dominance against it

LONDON -- When President Donald Trump issued an executive order in February against the chief prosecutor of the International Criminal Court for investigating Israel for war crimes, Microsoft was suddenly thrust into the middle of a geopolitical fight. For years, Microsoft had supplied the court -- which is based in The Hague in the Netherlands and investigates and prosecutes human rights breaches, genocides and other crimes of international concern -- with digital services such as email. Trump's order abruptly threw that relationship into disarray by barring U.S. companies from providing services to the prosecutor, Karim Khan. Soon after, Microsoft, which is based in Redmond, Washington, helped turn off Khan's ICC email account, freezing him out of communications with colleagues just a few months after the court had issued an arrest warrant for Prime Minister Benjamin Netanyahu of Israel for his country's actions in the Gaza Strip. Microsoft's swift compliance with Trump's order, reported earlier by The Associated Press, shocked policymakers across Europe. It was a wake-up call for a problem far bigger than just one email account, stoking fears that the Trump administration would leverage America's tech dominance to penalize opponents, even in allied countries like the Netherlands. 'The ICC showed this can happen,' said Bart Groothuis, a former head of cybersecurity for the Dutch Ministry of Defense who is now a member of the European Parliament. 'It's not just fantasy.' Groothuis once supported U.S. tech firms but has done a '180-degree flip-flop,' he said. 'We have to take steps as Europe to do more for our sovereignty.' Some at the ICC are now using Proton, a Swiss company that provides encrypted email services, three people with knowledge of the communications said. Microsoft said the decision to suspend Khan's email had been made in consultation with the ICC. The company said it had since enacted policy changes that had been in the works before the episode to protect customers in similar geopolitical situations in the future. When the Trump administration sanctioned four additional ICC judges this month, their email accounts were not suspended, the company said. Brad Smith, Microsoft's president, said concerns raised by the ICC episode were a 'symptom' of a larger erosion of trust between the United States and Europe. 'The ICC issue added fuel to a fire that was already burning,' he said. Khan has been on leave from the ICC since last month, pending a sexual misconduct investigation. He has denied the allegations. An ICC spokesperson said it was taking steps to 'mitigate risks which may affect the court's personnel' and 'taking extensive measures to ensure the continuity of all relevant operations and services in the face of sanctions.' The episode has set off alarms across Europe about how dependent European governments, businesses and citizens are on U.S. tech companies like Microsoft for essential digital infrastructure -- and how hard it will be to disentangle themselves. Concerns about how else Trump might leverage technology for political advantage has jump-started efforts across the region to develop alternatives. Casper Klynge, a former Danish and European Union diplomat who worked for Microsoft, said the episode was in many ways the 'smoking gun that many Europeans had been looking for.' 'If the U.S. administration goes after certain organizations, countries or individuals, the fear is American companies are obligated to comply,' said Klynge, who now works for a cybersecurity company. 'It's had a profound impact.' The tech debate adds to an increasingly fractious U.S.-European relationship over trade, tariffs and the war in Ukraine. Trump and Vice President JD Vance have criticized how Europe regulates U.S. tech companies, and U.S. officials have made digital oversight and taxation part of ongoing trade negotiations. European regulators have argued that they need to be able to police the biggest digital platforms in their own countries without worrying that they will face political pressure and punishment from a foreign government. 'If we don't build adequate capacity within Europe, then we won't be able to make political choices anymore,' said Alexandra Geese, a member of the European Parliament. Since Edward Snowden's leak of scores of documents in 2013 detailing widespread U.S. surveillance of digital communications, Europeans have sought to diminish their reliance on U.S. tech. Lawmakers and regulators have targeted Apple, Meta, Google and others for anticompetitive business practices, privacy-invading services, and the spread of disinformation and other divisive content. Yet without viable alternatives, institutions across the region have turned to U.S. digital services. Amazon, Google, Microsoft and other U.S. firms control more than 70% of the cloud computing market in Europe, which is the essential way for storing files, retrieving data and running other programs, according to Synergy Research Group. The ICC has been a longtime customer of Microsoft, which provides the court with services including the Office software suite and software for evidence analysis and file storage, according to an ICC lawyer who declined to be identified discussing internal procedures. Microsoft has also provided cybersecurity software to help the court withstand digital attacks from adversaries like Russia, which is being investigated for war crimes in Ukraine. In February, after Trump issued penalties against Khan, Microsoft met with ICC officials to decide how to respond. They concluded that Microsoft's broader work for the court could continue but that Khan's email should be suspended. He switched his correspondence to another email account, said a person who has communicated with him. Sara Elizabeth Dill, a lawyer who specializes in sanctions compliance, said the Trump administration was increasingly using sanctions and executive orders to target international institutions, universities and other organizations, forcing companies to make hard choices about how to comply. 'This is a quagmire and places these corporations in a very difficult position,' she said. How tech companies with global services respond is especially important, she added, 'as the broad repercussions are what people and organizations are primarily worried about.' Microsoft and other U.S. companies have sought to reassure European customers. On Monday, Microsoft CEO Satya Nadella visited the Netherlands and announced new 'sovereign solutions' for European institutions, including legal and data security protections for 'a time of geopolitical volatility.' Amazon and Google have also announced policies aimed at European customers. Still, many institutions are exploring alternatives. In the Netherlands, the 'subject of digital autonomy and sovereignty has the full attention of the central government,' Eddie van Marum, the state secretary of digitalization in the Ministry of Interior Affairs, said in a statement. The country is working with European providers on new solutions, he said. In Denmark, the digital ministry is testing alternatives to Microsoft Office. In Germany, the northern state of Schleswig-Holstein is also taking steps to cut its use of Microsoft. In the European Union, officials have announced plans to spend billions of euros on new artificial intelligence data centers and cloud computing infrastructure that rely less on U.S. companies. Groothuis, the Dutch member of the European Parliament, said lawmakers in Brussels were discussing policy changes that would encourage governments to favor buying tech services from EU-based companies. 'The situation is not tenable, and we see a big push from European governments to become more independent and more resilient,' said Andy Yen, CEO of Proton. European tech companies see an opportunity to win customers from their U.S. rivals. Cloud service providers like Intermax Group, based in the Netherlands, and Exoscale, based in Switzerland, said they had seen a jump in new business. 'A few years ago, everyone was saying, 'They're our trusted partners,'' Ludo Baauw, Intermax's CEO, said of U.S. tech companies. 'There's been a radical change.' This article originally appeared in The New York Times. Copyright 2025