FirstEnergy (FE) Upgraded to 'Outperform' at Wolfe Research

FirstEnergy Corp. (NYSE:FE) is included among the 10 High Yield Utility Stocks to Buy in 2026.

FirstEnergy Corp. (NYSE:FE)’s 10 electric distribution companies form one of America’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York.

On January 27, Wolfe Research upgraded FirstEnergy Corp. (NYSE:FE) from ‘Peer Perform’ to ‘Outperform’, while assigning the stock a price target of $50. According to the analyst, the incremental Federal Energy Regulatory Commission transmission capex upside pushes the utility’s rate base growth to 10%. Wolfe Research expects FE’s earnings growth to come in toward the top-end of 6-8%.

FirstEnergy Corp. (NYSE:FE) also received a boost earlier on January 21. Morgan Stanley raised its price target on the stock from $47 to $49, while maintaining an ‘Overweight’ rating on the shares. The revised target, which indicates an upside of over 3% from the current levels, comes as the analyst firm is updating the Regulated & Diversified Utilities / IPPs in North America under its coverage. The analyst also noted that the utilities sector fell by 3% in December 2025, underperforming the wider market.

With an annual dividend yield of 3.76% as of the writing of this piece, FirstEnergy Corp. (NYSE:FE) is included among the 14 Best Utility Dividend Stocks to Buy Now.

While we acknowledge the potential of FE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Performing Utility Stocks in 2025 and 11 Best Energy Stocks to Buy for Dividends in 2026.

Disclosure: None.