Public Service Enterprise Group Shows Resilience Amid Mixed Earnings

New Jersey-based Public Service Enterprise Group Incorporated (PEG) is a key player in the electric and gas utility sector in the U.S. With a market cap of $42.6 billion, PEG operates through two main subsidiaries: PSEG Power LLC and Public Service Electric and Gas Company (PSE&G).

Large-Cap Status and Operations

Being valued over $10 billion classifies PEG as a “large-cap stock.” Known for its commitment to clean energy, nuclear power, and energy transmission and distribution, PEG boasts an extensive electric transmission and distribution network, including 25,000 circuit miles and 866,600 poles as of December 31, 2023.

Stock Performance Analysis

Shares of PEG have fallen 9.7% from its 52-week peak of $95.22 on November 27. In contrast, PEG has gained 3.2% in the last three months, trailing behind the Nasdaq Composite’s 13.3% increase in the same period. Over the past year, the stock has climbed 37.4%, outperforming the Nasdaq’s nearly 37% returns. Moreover, PEG shares are up 40.6% year-to-date, easily outpacing Nasdaq, which has seen a 32.6% rise.

Recent Earnings and Challenges

On November 4, PEG’s shares fell 6.2% after the company reported mixed Q3 earnings. The adjusted earnings per share (EPS) climbed 5.9% year-over-year to $0.90 but fell short of expectations by 1.1%. Though revenue rose 7.6% to $2.6 billion, surpassing the $2.5 billion forecast, a 5% rise in operating expenses to $2 billion and a 22.7% increase in interest expenses raised some concerns. Furthermore, net income from the PSE&G segment declined by 5.5% to $379 million.

Comparative Outlook

Despite these challenges, PEG has outperformed competitor Duke Energy Corporation (DUK), which has increased 14.5% over the past year and 12.5% year-to-date.

Analyst Sentiment

Analysts hold a moderately optimistic view regarding PEG’s future. It currently has a consensus rating of “Moderate Buy” from the 20 analysts that follow the stock. The average price target is set at $90.29, indicating a potential 5% increase from current levels.

On the date of publication,
Neharika Jain
did not hold positions in any securities mentioned in this article. All data in this article is for informational purposes only. For more information, please refer to the Barchart Disclosure Policy here.

The views expressed here are those of the author and do not necessarily reflect those of Nasdaq, Inc.