With a market cap of $39.2 billion, Public Service Enterprise Group Incorporated (PEG) is a U.S.-based energy company operating electric and gas utility services and nuclear power generation through its PSE&G and PSEG Power segments. It delivers electricity and natural gas across an extensive transmission and distribution network while also investing in nuclear, solar, and energy efficiency initiatives.
Shares of the Newark, New Jersey-based company have underperformed the broader market over the past 52 weeks. PEG stock has fallen nearly 1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 25.8%. Moreover, shares of the company are down 4.3% on a YTD basis, compared to SPX's 8.2% gain.
Looking closer, PEG stock has also lagged behind the State Street Utilities Select Sector SPDR ETF's (XLU) 11.6% return over the past 52 weeks.
Shares of Public Service Enterprise fell marginally on May 5, as investors focused on rising costs and weaker operational factors within parts of the business. While Q1 2026 net income increased to $741 million and adjusted operating earnings rose to $778 million, PSE&G faced higher operation and maintenance expenses, along with increased depreciation and interest costs tied to ongoing infrastructure investments. Investor sentiment was also weighed down by lower generating volumes and the absence of zero emission certificates in the PSEG Power segment, partly offsetting benefits from higher realized power prices and lower operating costs.
For the fiscal year ending in December 2026, analysts expect PEG's EPS to grow 7.7% year-over-year to $4.36. The company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 22 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings and 13 “Holds.”
On May 7, BTIG's Alex Kania maintained a “Buy" rating on Public Service Enterprise and set a price target of $94 for the stock.
The mean price target of $91.03 represents a premium of 18.6% to PEG's current levels. The Street-high price target of $99 implies a potential upside of 28.9% from the current price levels.
On the date of publication, Sohini Mondal 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. For more information please view the Barchart Disclosure Policy here.
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