Stock of the Day

Public Service Enterprise Group (PEG)

$80.41

+$0.58 (+0.7%)

Market Cap: $40.11B

About Public Service Enterprise Group

Public Service Enterprise Group Incorporated, through its subsidiaries, operates in electric and gas utility business in the United States. It operates through PSE&G and PSEG Power segments. The PSE&G segment transmits electricity; distributes electricity and natural gas to residential, commercial, and industrial customers; and appliance services and repairs to customers through its service territory, as well as invests in solar generation projects, and energy efficiency and related programs.

The PSEG Power segment engages in nuclear generation businesses; and supplies power and natural gas to nuclear power plants and gas storage facilities activities. As of December 31, 2023, it had electric transmission and distribution system of 25,000 circuit miles and 866,600 poles; 56 switching stations with an installed capacity of 39,953 megavolt-amperes (MVA), and 235 substations with an installed capacity of 10,382 MVA; 109 MVA aggregate installed capacity for substations; four electric distribution headquarters and five electric sub-headquarters; 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and one meter shop, as well as 56 natural gas metering and regulating stations; and 158 MegaWatts defined conditions of installed PV solar capacity. Public Service Enterprise Group Incorporated was founded in 1903 and is based in Newark, New Jersey.

Public Service Enterprise Group Bull Case

Here are some ways that investors could benefit from investing in Public Service Enterprise Group Incorporated:

• The company has demonstrated strong financial performance, with a recent earnings per share (EPS) of $1.43, aligning with analysts' expectations, indicating stability and reliability in earnings.
• Public Service Enterprise Group Incorporated reported a significant year-over-year revenue increase of 16.7%, showcasing its growth potential and ability to expand its market presence.
• The current stock price is around $82, which may present a buying opportunity for investors looking for value in the utilities sector.
• The company has a solid dividend yield of approximately 3.12%, providing investors with a steady income stream, which is particularly attractive in the current market environment.
• Public Service Enterprise Group Incorporated has a return on equity of 10.70%, reflecting effective management and the ability to generate profits from shareholders' equity, which is a positive indicator for potential investors.

Public Service Enterprise Group Bear Case

Investors should be bearish about investing in Public Service Enterprise Group Incorporated for these reasons:

• Recent analyst downgrades, including a shift from "buy" to "hold" ratings by several firms, may indicate a lack of confidence in the stock's short-term performance.
• The company's dividend payout ratio is currently at 68.85%, which, while sustainable, suggests that a significant portion of earnings is being distributed as dividends rather than reinvested for growth.
• Insider selling activity, such as the CEO selling shares, could raise concerns about the company's future prospects and the confidence of its leadership in its stock performance.
• Market analysts have set a relatively conservative average target price of $89.63, which may limit upside potential for investors looking for significant capital appreciation.
• With one analyst rating the stock as a "sell," there is a potential risk of negative sentiment affecting the stock's performance in the near term.

Recent News

• Insider Sell: Ralph Larossa Sells Shares of Public Service Enterprise Group Inc (PEG) (gurufocus.com)
• PSE&G Proactively Implements Summer Relief Initiative to Protect Residential Electric Customers from Higher Costs (prnewswire.com)