Based in Newark, New Jersey, Public Service Enterprise Group Incorporated (PEG) is an energy holding company that generates, transmits, and distributes electricity and gas through its subsidiaries. Valued at $36.42 billion by market cap, the company serves commercial, residential, and industrial customers.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and PEG perfectly fits that description, signifying its substantial size, stability, and dominance in its industry. The company is working towards its goal of net-zero carbon emissions by 2030.
The leading energy company has fallen 3.6% from its 52-week high of $75.82, which it hit on May 31. Shares of PEG are up 9.5% over the past three months, outperforming the broader Utilities ETF Vanguard’s (VPU) 4.6% gains over the same time frame.
Longer term, PEG shares have risen 18.9% over the past year, and in 2024, the stock is up 19.6%. By contrast, the VPU is up 8.8% on a YTD basis and 5.2% over the past 52 weeks.
The stock has been trading above its 50-day and 200-day moving averages since late February to confirm the bullish price trend.
On Apr. 30, PEG reported its Q1 results. Its adjusted EPS of $1.31 fell short of the consensus estimate of $1.32. The company’s revenue came in at $2.76 billion, surpassing the Wall Street estimates of $2.65 billion. PEG expects full-year EPS to be between $3.60 and $3.70. Shares of PEG closed up marginally on the day the results were released and have been on an uptrend since then.
Rival Ameren Corporation (AEE) has underperformed PEG. AEE stock has declined 12.8% in the past 52 weeks and is down 2.5% on a YTD basis.
With its recent outperformance compared to other utility stocks, analysts remain optimistic about PEG’s prospects. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering it, and the mean price target of $74.30 is only a 1.6% premium to current levels.
On the date of publication, Dipanjan Banchur 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.
