5 Best Electric Utility Stocks To Buy Now

4. FirstEnergy Corp. (NYSE:FE)

Number of Hedge Fund Holders: 36

FirstEnergy Corp. (NYSE:FE) generates, transmits, and distributes electricity through its subsidiaries. The company operates in two segments, Regulated Distribution and Regulated Transmission. FirstEnergy Corp. (NYSE:FE) owns and runs various power generating facilities, including coal-fired, nuclear, hydroelectric, wind, and solar. On March 22, the company declared a quarterly dividend of $0.39 per share, in line with previous. The dividend is distributable on June 1, to shareholders of record on May 5. It is one of the best electric utility stocks to buy. 

On March 28, Mizuho analyst Anthony Crowdell maintained a Neutral rating on FirstEnergy Corp. (NYSE:FE) and decreased the price target on the shares from $42 to $40. The appointment of Brian Tierney as CFO is considered appropriate given his expertise in handling Ohio regulations and his strong rapport with the company’s board, the analyst told investors. The firm had anticipated the stock to rise on the news and believed the slight underperformance was due to the removal of any takeover premium. As a result, the price target was lowered to reflect current market multiples.

According to Insider Monkey’s fourth quarter database, 36 hedge funds were long FirstEnergy Corp. (NYSE:FE), compared to 41 funds in the prior quarter. Robert Rodriguez and Steven Romick’s First Pacific Advisors is the largest stakeholder of the company, with 3.6 million shares worth $151.5 million.

Here is what ClearBridge Investments Global Infrastructure Income Strategy has to say about FirstEnergy Corp. (NYSE:FE) in its Q4 2021 investor letter:

“On a regional level, the Strategy’s largest exposure is in the U.S. and Canada (44%), consisting of regulated and contracted utilities (31%) and economically sensitive user-pays infrastructure (13%).

During the quarter we initiated new positions in U.S. electric utility FirstEnergy.  With supply chain issues, higher housing costs, higher commodity prices and producer price inflation remaining square in the sights for 2022, we think higher inflation is a risk for global markets. We expect growth to slow to trend or below by mid-2022 and U.S.”