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FirstEnergy (FE, $39.07) is selling $2.4 million of its transmission business to Brookfield Asset Management
FirstEnergy is selling a nearly 20% stake in its transmission business to Brookfield Asset Management for $2.4 billion.
Under the terms of the agreement, Brookfield's infrastructure group would purchase a 19.9% stake in FirstEnergy Transmission LLC that includes subsidiaries American Transmission Systems, Mid-Atlantic Interstate Transmission and Trans-Allegheny Interstate Line Co. The deal implies an electric utility valuation of 40 times trailing earnings per share for the past 12 months.
The electric utility company also announced a deal to issue $1 billion in common stock to Blackstone Infrastructure Partners at $39.08 a share, for smart grid and clean energy transition initiatives.
The deals raise $3.4 billion in equity proceeds, which FirstEnergy aims to use to bolster its financial position, capitalize on incremental investment opportunities and address all equity plans, according to the company ‘s statement.
FE's RSI Indicator recovers from oversold territory
The RSI Oscillator for FE moved out of oversold territory on May 11, 2022. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 25 similar instances when the indicator left oversold territory. In 22 of the 25 cases the stock moved higher. This puts the odds of a move higher at 88%.
Current price $42.51 crossed the support line at $43.15 and is trading between $43.15 support and $41.24 support lines. Throughout the month of 04/12/22 - 05/13/22, the price experienced a -9% Downtrend. During the week of 05/06/22 - 05/13/22, the stock fell -0.40%.
The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 37 of 50 cases where FE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 74%.
Following a +1.65% 3-day Advance, the price is estimated to grow further. Considering data from situations where FE advanced for three days, in 219 of 386 cases, the price rose further within the following month. The odds of a continued upward trend are 57%.
FE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 173 of 319 cases where FE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 54%.
The Momentum Indicator moved below the 0 level on April 22, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on FE as a result. In 29 of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 37%.
The Moving Average Convergence Divergence Histogram (MACD) for FE turned negative on April 22, 2022. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 19 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 40%.
FE moved below its 50-day Moving Average on April 29, 2022 date and that indicates a change from an upward trend to a downward trend.
The 10-day Moving Average for FE crossed bearishly below the 50-day moving average on May 05, 2022. This indicates that the trend has shifted lower and could be considered a sell signal. In 5 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 29%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 35%.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 14%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.3.
The Tickeron PE Growth Rating for this company is 13 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 34 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 62, placing this stock slightly better than average.
The Tickeron SMR rating for this company is 43 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 46 (best 1 - 100 worst), indicating steady price growth. FE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 61 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.772) is normal, around the industry mean (1.740). P/E Ratio (19.763) is within average values for comparable stocks, (27.288). Projected Growth (PEG Ratio) (4.486) is also within normal values, averaging (3.736). Dividend Yield (0.037) settles around the average of (0.047) among similar stocks. P/S Ratio (2.062) is also within normal values, averaging (3.500).
Electric utilities companies generate, transmit and distribute electricity to businesses/offices and residences. Companies may be owned by the government or investors or public shareholders, or a combination thereof. The industry also includes firms that buy and sell electricity. Companies in this industry typically require significant investments in infrastructure. Many firms in this industry pay substantial and regular dividends to shareholders. However, changes in interest rates (and their impact on debt burdens), natural disasters and changing commodity prices could be factors affecting energy utilities’ profit margins. NextEra Energy, Inc., Duke Energy Corporation, Dominion Energy Inc. and Southern Company are among U.S. electric utilities companies with the largest market capitalizations.
The average market capitalization across the Electric Utilities Industry is 15.8B. The market cap for tickers in the group ranges from 500 to 137.1B. NEE holds the highest valuation in this group at 137.1B. The lowest valued company is SLTZ at 500.
The average weekly price growth across all stocks in the Electric Utilities Industry was -0.51%. For the same Industry, the average monthly price growth was -2.91%, and the average quarterly price growth was -1.09%. UEPCO experienced the highest price growth at 74.78%, while JENGQ experienced the biggest fall at -83.86%.
- 4/27/22 5:34 AM: FirstEnergy (FE, $44.98) was a top loser this week, declining -5.31%
- 3/31/22 6:39 AM: FirstEnergy (FE, $45.8) was a top weekly gainer, with a +5.26% jump
- 3/10/22 6:33 AM: FirstEnergy (FE, $44.08) was a top weekly gainer, with a +5.78% jump. Expect an Uptrend continuation
The average weekly volume growth across all stocks in the Electric Utilities Industry was -13.89%. For the same stocks of the Industry, the average monthly volume growth was 13.51% and the average quarterly volume growth was 23.45%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the 15 Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 42%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.35.
53 stocks in the group of tickers exhibit a similar negative trend based on the MACD indicator with an average likelihood of 50%.
The most notable companies in this group are Nextera Energy Inc (NYSE:NEE), Southern Company (The) (NYSE:SO), Dominion Energy (NYSE:D), PG&E Corp (NYSE:PCG), NRG Energy (NYSE:NRG).
The average market capitalization across the group is 19.5B. The market cap for tickers in the group ranges from 0 to 137.1B. NEE holds the highest valuation in this group at 137.1B. The lowest valued company is JENGQ at 0.
The average weekly price growth across all stocks in the group was -0.82%. For the same group, the average monthly price growth was -5.27%, and the average quarterly price growth was 4.05%. GNE experienced the highest price growth at 17.8%, while JENGQ experienced the biggest fall at -83.86%.
- 5/14/22 4:24 AM: Edison International (EIX, $65.46) was a top loser this week, declining -6.88%. Expect a Downtrend reversal
- 5/12/22 5:38 AM: Vistra (VST, $24.29) was a top loser this week, declining -6.29%. Expect a Downtrend reversal
- 5/12/22 5:38 AM: NRG Energy (NRG, $41.79) was a top weekly gainer, with a +9.25% jump
The average weekly volume growth across all stocks in the group was 107.43%. For the same stocks of the group, the average monthly volume growth was 237.11% and the average quarterly volume growth was 298.34%
- 5/12/22 5:33 AM: The volume for Enel Societa Per Azioni stock increased for one day, resulting in a record-breaking daily growth of 207% of the 65-Day Volume Moving Average
- 4/30/22 5:51 AM: The volume for South Jersey Industries stock increased for one day, resulting in a record-breaking daily growth of 281% of the 65-Day Volume Moving Average
- 4/23/22 4:13 AM: The volume for Enel Americas SA stock increased for one day, resulting in a record-breaking daily growth of 260% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
The most notable companies in this group are Nextera Energy Inc (NYSE:NEE), Southern Company (The) (NYSE:SO), Dominion Energy (NYSE:D), PG&E Corp (NYSE:PCG), NRG Energy (NYSE:NRG).
Electric utilities companies generate, transmit and distribute electricity to businesses/offices and residences. Companies may be owned by the government or investors or public shareholders, or a combination thereof. The industry also includes firms that buy and sell electricity. Companies in this industry typically require significant investments in infrastructure. Many firms in this industry pay substantial and regular dividends to shareholders. However, changes in interest rates (and their impact on debt burdens), natural disasters and changing commodity prices could be factors affecting energy utilities’ profit margins. NextEra Energy, Inc., Duke Energy Corporation, Dominion Energy Inc. and Southern Company are among U.S. electric utilities companies with the largest market capitalizations.
The average market capitalization across the Electric Utilities Industry is 15.8B. The market cap for tickers in the group ranges from 500 to 137.1B. NEE holds the highest valuation in this group at 137.1B. The lowest valued company is SLTZ at 500.
The average weekly price growth across all stocks in the Electric Utilities Industry was -0.51%. For the same Industry, the average monthly price growth was -2.91%, and the average quarterly price growth was -1.09%. UEPCO experienced the highest price growth at 74.78%, while JENGQ experienced the biggest fall at -83.86%.
- 5/14/22 4:24 AM: Edison International (EIX, $65.46) was a top loser this week, declining -6.88%. Expect a Downtrend reversal
- 5/12/22 5:38 AM: Vistra (VST, $24.29) was a top loser this week, declining -6.29%. Expect a Downtrend reversal
- 5/12/22 5:38 AM: NRG Energy (NRG, $41.79) was a top weekly gainer, with a +9.25% jump
The average weekly volume growth across all stocks in the Electric Utilities Industry was -13.89%. For the same stocks of the Industry, the average monthly volume growth was 13.51% and the average quarterly volume growth was 23.45%
- 5/12/22 5:33 AM: The volume for Enel Societa Per Azioni stock increased for one day, resulting in a record-breaking daily growth of 207% of the 65-Day Volume Moving Average
- 4/30/22 5:51 AM: The volume for South Jersey Industries stock increased for one day, resulting in a record-breaking daily growth of 281% of the 65-Day Volume Moving Average
- 4/23/22 4:13 AM: The volume for Enel Americas SA stock increased for one day, resulting in a record-breaking daily growth of 260% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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