Public Service Enterprise Group Incorporated (PEG)
Public Service Enterprise Group (PEG) is an energy company operating primarily in the Northeastern and Mid-Atlantic United States. Through its subsidiaries, it delivers electricity and gas to residential, commercial, and industrial customers.
Company Overview
Public Service Enterprise Group (PEG) offers a stable investment opportunity in the regulated electric and gas utility sector, providing essential services to a large customer base in the Northeastern and Mid-Atlantic United States with a solid dividend yield of 3.16% and a beta of 0.62.
Investment Thesis
Public Service Enterprise Group (PEG) presents a compelling investment opportunity due to its stable, regulated business model and strategic focus on infrastructure investments. The company's consistent profitability, demonstrated by a 17.8% profit margin, and its commitment to returning value to shareholders through a 3.16% dividend yield, make it an attractive option for income-seeking investors. PEG's beta of 0.62 suggests lower volatility compared to the broader market. Upcoming investments in grid modernization and renewable energy projects should drive future growth. The company's strong market position in the Northeastern and Mid-Atlantic United States, coupled with increasing demand for reliable energy, supports a positive long-term outlook. Investors should consider PEG for its stability, income potential, and strategic investments in future energy infrastructure.
Key Highlights
- Market capitalization of $39.83 billion, reflecting substantial investor confidence.
- P/E ratio of 19.12, indicating a reasonable valuation relative to earnings.
- Profit margin of 17.8%, showcasing efficient operations and profitability.
- Gross margin of 35.6%, demonstrating solid cost management in service delivery.
- Dividend yield of 3.16%, providing a steady income stream for investors.
Competitors
Strengths
- Stable, regulated revenue streams.
- Strong market position in the Northeastern and Mid-Atlantic United States.
- Commitment to renewable energy and energy efficiency.
- Reliable infrastructure network.
Weaknesses
- Exposure to regulatory risks and changes in energy policy.
- Dependence on aging infrastructure.
- Vulnerability to extreme weather events.
- Potential for cost overruns on large infrastructure projects.
Catalysts
- Ongoing: Investments in grid modernization and smart grid technologies to improve reliability and efficiency.
- Ongoing: Expansion of renewable energy portfolio to meet growing demand for clean energy.
- Upcoming: Regulatory approvals for new infrastructure projects and rate increases.
- Ongoing: Government incentives and subsidies for renewable energy and energy efficiency projects.
Risks
- Potential: Changes in regulatory policies that could impact profitability.
- Ongoing: Rising interest rates that could increase financing costs.
- Potential: Extreme weather events that could damage infrastructure and disrupt service.
- Ongoing: Cybersecurity threats to critical infrastructure.
- Potential: Economic downturns that could reduce energy demand.
Growth Opportunities
- Expansion of Renewable Energy Portfolio: PEG has the opportunity to significantly expand its renewable energy portfolio, capitalizing on growing demand for clean energy and favorable regulatory policies. Investments in solar, wind, and other renewable sources can drive revenue growth and enhance the company's environmental profile. The market for renewable energy is projected to grow substantially, offering PEG a long-term growth avenue. Timeline: Ongoing.
- Grid Modernization Initiatives: Upgrading and modernizing its existing electric grid infrastructure presents a substantial growth opportunity for PEG. These initiatives enhance grid reliability, improve energy efficiency, and facilitate the integration of renewable energy sources. Government incentives and regulatory support for grid modernization further enhance this opportunity. The investment in smart grid technologies is expected to increase significantly. Timeline: Ongoing.
- Energy Efficiency Programs: PEG can leverage energy efficiency programs to reduce energy consumption and promote sustainable practices among its customers. These programs not only benefit the environment but also create new revenue streams for the company through the provision of energy-saving products and services. The market for energy efficiency solutions is expanding, driven by rising energy costs and environmental concerns. Timeline: Ongoing.
- Strategic Acquisitions: PEG can pursue strategic acquisitions to expand its geographic footprint and diversify its service offerings. Acquiring smaller utility companies or renewable energy projects can provide PEG with access to new markets and technologies. The utility sector is consolidating, creating opportunities for PEG to grow through acquisitions. Timeline: Ongoing.
- Electrification of Transportation: The increasing adoption of electric vehicles (EVs) presents a significant growth opportunity for PEG. The company can invest in EV charging infrastructure and offer related services to support the growing EV market. The electrification of transportation is a major trend, creating new demand for electricity and related infrastructure. Timeline: Upcoming.
Opportunities
- Expansion of renewable energy portfolio.
- Investments in grid modernization and smart grid technologies.
- Growth in electric vehicle charging infrastructure.
- Strategic acquisitions of smaller utility companies.
Threats
- Increasing competition from alternative energy sources.
- Rising interest rates and financing costs.
- Cybersecurity threats to critical infrastructure.
- Economic downturns that reduce energy demand.
Competitive Advantages
- Regulated utility operations provide a natural monopoly and barriers to entry.
- Extensive infrastructure network creates a significant competitive advantage.
- Strong brand reputation and customer loyalty in its service territory.
About
Public Service Enterprise Group Incorporated (PEG), incorporated in 1985 and headquartered in Newark, New Jersey, is a diversified energy company with a strong presence in the Northeastern and Mid-Atlantic United States. The company operates primarily through its subsidiaries, PSE&G and PSEG Power. PSE&G focuses on the transmission and distribution of electricity and gas to a wide range of customers, including residential, commercial, and industrial clients. As of December 31, 2021, PSE&G's infrastructure included an extensive electric transmission and distribution system comprising 25,000 circuit miles and 862,000 poles. The segment also operates 56 switching stations with an installed capacity of 39,353 megavolt-amperes (MVA) and 235 substations with an installed capacity of 9,285 MVA. Furthermore, PSE&G manages 18,000 miles of gas mains and numerous gas distribution facilities. Beyond its core utility services, PSE&G invests in solar generation projects and energy efficiency programs, reflecting a commitment to sustainable energy solutions. PSEG Power, while mentioned, has less information available in the provided data. PEG's strategic focus on regulated utility operations provides a stable revenue base and positions it as a key player in the energy sector.
What They Do
- Transmits electricity across its service territory.
- Distributes electricity to residential, commercial, and industrial customers.
- Distributes natural gas to residential, commercial, and industrial customers.
- Invests in solar generation projects.
- Offers energy efficiency programs to customers.
- Provides appliance services and repairs.
Business Model
- Generates revenue through the regulated transmission and distribution of electricity and gas.
- Earns returns on investments in infrastructure and renewable energy projects.
- Benefits from regulated rate structures that provide stable and predictable cash flows.
Industry Context
Public Service Enterprise Group (PEG) operates within the regulated electric and gas utility industry, a sector characterized by stable demand and significant infrastructure investments. The industry is undergoing a transformation driven by the increasing adoption of renewable energy sources and the need for grid modernization. PEG competes with other major utility companies, such as AEE, D, DTE, ED, and ETR, all vying for market share in the provision of essential energy services. The industry's growth is closely tied to population growth, economic activity, and regulatory policies promoting clean energy and energy efficiency.
Key Customers
- Residential customers who rely on electricity and gas for their homes.
- Commercial customers, including businesses and organizations.
- Industrial customers, such as manufacturing plants and factories.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $2.64B | $520M | $1.04 |
| Q4 2024 | $2.46B | $286M | $0.57 |
| Q1 2025 | $3.22B | $589M | $1.18 |
| Q2 2025 | $2.81B | $585M | $1.17 |
Source: Company filings
Chart & Info
Price Chart
Public Service Enterprise Group Incorporated (PEG) stock price: $85.57 (+0.00, +0.00%)
Why Bull
- •Recent insider buying suggests confidence in the company's future, indicating that executives see value in their stock.
- •Community sentiment has shifted positively, with discussions highlighting the company's commitment to renewable energy initiatives.
- •Analysts have noted improvements in operational efficiency, which could enhance profit margins in the long run.
- •The ongoing infrastructure investments in the energy sector position PEG well for future growth opportunities.
Why Bear
- •Concerns over regulatory changes in the energy sector have led some investors to express caution about PEG's long-term outlook.
- •Recent social sentiment has shown skepticism regarding the pace of the company's transition to sustainable energy sources.
- •Increased competition from other energy providers has raised questions about PEG's market share retention.
- •Market perception remains cautious due to broader economic uncertainties that could impact utility demand.
Latest News
No recent news available for PEG.
Technical Analysis
Rationale
AI-generated technical analysis for PEG including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for PEG.
Make a Prediction
Set your price target for Public Service Enterprise Group Incorporated (PEG), choose a timeframe, and track your prediction accuracy.
Current price: $85.57
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for PEG.
Price Targets
Wall Street price target analysis for PEG.
Insider Flow (30d)
No insider trades in the last 30 days.
MoonshotScore
Score Factors
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Revenue Growth 2/100
Revenue declined -8.4% YoY, signaling shrinking demand or market headwinds.
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Gross Margin 6/100
Gross margin of 35.6% is acceptable but leaves limited room for R&D and marketing investment.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates PEG's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Frequently Asked Questions
What does Public Service Enterprise Group Incorporated do?
Public Service Enterprise Group Incorporated (PEG), through its subsidiaries, operates as a diversified energy company primarily in the Northeastern and Mid-Atlantic United States. Its core business involves the regulated transmission and distribution of electricity and gas to residential, commercial, and industrial customers. PEG also invests in renewable energy projects, such as solar generation, and offers energy efficiency programs to promote sustainable practices. The company's strategic focus on regulated utility operations provides a stable revenue base and positions it as a key player in the energy sector.
Is PEG stock a good buy?
PEG stock may be a suitable investment for those seeking stable income and lower volatility. The company's regulated utility operations provide a predictable revenue stream, and its 3.16% dividend yield offers an attractive income opportunity. With a P/E ratio of 19.12, the stock appears reasonably valued. Growth opportunities in renewable energy and grid modernization could drive future appreciation. However, investors should consider regulatory risks and potential economic downturns before investing. The beta of 0.62 indicates lower volatility compared to the market.
What are the main risks for PEG?
PEG faces several risks, including regulatory changes that could impact its profitability. Rising interest rates could increase financing costs for infrastructure projects. Extreme weather events pose a threat to its infrastructure and service delivery. Cybersecurity threats are a growing concern for critical infrastructure. Economic downturns could reduce energy demand and impact revenue. Investors should carefully consider these risks before investing in PEG stock.
Is PEG a good stock to buy?
Whether PEG is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the PEG MoonshotScore?
The MoonshotScore for PEG is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is PEG data updated?
PEG stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to PEG is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for PEG?
Growth catalysts for Public Service Enterprise Group Incorporated (PEG) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes Public Service Enterprise Group Incorporated's specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are PEG's main competitors?
Public Service Enterprise Group Incorporated (PEG) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether PEG has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about PEG?
Wall Street analyst coverage for PEG includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is PEG's market cap?
Market capitalization (market cap) for PEG is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows PEG's current market cap alongside enterprise value and other valuation metrics.
How has PEG stock performed recently?
PEG's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing PEG's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in PEG?
Key risk categories for PEG include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures PEG's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling PEG?
Insider trading activity for PEG tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is PEG a good stock for beginners?
Public Service Enterprise Group Incorporated (PEG) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is PEG for first-time investors?
Every stock carries risk, including Public Service Enterprise Group Incorporated (PEG). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like PEG.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- The information provided is based on available data and is subject to change.
- Investment decisions should be based on individual risk tolerance and financial circumstances.