Public Service Enterprise Group (PEG) is the holding company for a regulated utility (PSE&G), a merchant power generation owner (PSEG Power), and an energy investment firm (PSEG Enterprise).
The company has a strong portfolio of regulated and non-regulated utility assets that offer stable earnings and long-term growth potential. PEG has invested over $3.5 billion to promote clean energy in New Jersey.
From a fundamental standpoint, the company had long-term debt of $15 billion as of the end of the quarter, but only $966 million. The company is quite profitable though with a net margin of 19.7%.
Earnings were slightly down last quarter, while revenues beat expectations and were up 3% year over year. Earnings are expected to fall this quarter, but rebound in the next quarter. The stock is fairly valued with a P/E of 15.8.
PEG is up slightly for the year, but has seen recent momentum. This has resulted in a “Strong Buy” rating in our POWR Ratings system, which leads us to its recent price movement.
Take a look at the 1-year chart of PEG below with added notations…
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