Valued at a market cap of $40.8 billion, Public Service Enterprise Group Incorporated (PEG) is a diversified energy company that primarily generates and distributes electricity and natural gas. The Newark, New Jersey-based company also invests in clean energy initiatives, grid modernization, and energy efficiency programs, positioning itself as a key player in the transition toward a more sustainable energy future.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and PEG fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the utilities - regulated electric industry. The company’s strength lies in its stable, regulated utility operations, which provide reliable cash flows and a strong customer base across New Jersey. Additionally, its commitment to sustainability and innovation enhances its long-term growth prospects while meeting evolving customer and regulatory expectations.
This energy company has slipped 14.2% from its 52-week high of $95.22, reached on Nov. 27, 2024. Shares of PEG have gained 2.9% over the past three months, underperforming the Utilities Select Sector SPDR Fund’s (XLU) 4.7% return during the same time frame.
In the longer term, PEG has gained 1.3% over the past 52 weeks, lagging behind XLU's 9.8% uptick over the same time period. Moreover, on a YTD basis, shares of PEG are down 3.3%, compared to XLU’s 11.8% rise.
To confirm its bearish trend, PEG has been trading below its 200-day and 50-day moving averages since late August.
On Aug. 5, PEG delivered better-than-expected Q2 earnings results. The company’s operating revenue increased 15.8% year-over-year to $2.8 billion, handily exceeding consensus estimates by 20.1%. Moreover, its adjusted operating earnings of $0.77 per share improved 22.2% from the year-ago quarter and came in 8.5% ahead of analyst expectations. However, despite these positives, its shares plunged 2.2% following the earnings release. A fall in retail electric sales due to a decline in both residential and commercial & industrial sales might have made investors jittery.
PEG has outpaced its rival, Consolidated Edison, Inc.’s (ED) 7.5% drop over the past 52 weeks. However, it has lagged behind ED’s 8.8% surge on a YTD basis.
Despite PEG’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 17 analysts covering it, and the mean price target of $92.35 suggests a 13% premium to its current price levels.
On the date of publication, Neharika Jain 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.
/Microsoft%20Corporation%20logo%20on%20sign-by%20Jean-Luc%20Ichard%20via%20iStock.jpg)
/ServiceNow%20Inc%20logo%20on%20phone-by%20rafapress%20via%20Shutterstock.jpg)