PEG Stock Analysis — Public Service Enterprise Group
Sector: Utilities
AI Verdict
PEG looks cheap for a utility at 17.0x forward earnings with double-digit growth expected, and the regulated moat makes that growth more credible than most in the sector.
Competitive Moat
PEG owns regulated electric and gas utilities in New Jersey, giving it predictable cash flows and high barriers to entry due to state oversight and infrastructure requirements. Its scale and regulatory relationships make it difficult for new competitors to disrupt its core markets.
Summary
PEG's RSI of 29.5 signals the stock is oversold after a -10.88% one-year return, putting it on value-watch for mean reversion.
Where It Stands
PEG trades at 17.0x next year's earnings, a slight premium to the utility sector median of 18x, with analysts expecting 11.0% EPS growth and an RSI of 29.5 indicating oversold conditions.
Key Metrics
- RSI: 29.5 — Oversold
- Trailing P/E: 18.9x
- Forward P/E: 17.0x
- PEG Ratio: 1.74
- Earnings Growth: +0.1%
- Revenue Growth: +0.1%
- Market Cap: $37.9B
- Dividend Yield: 0.04%
- 1-Year Return: -10.88%
- 52-Week High: $87.63
- 52-Week Low: $74.20
Analyst Consensus
12 Buy · 16 Hold · 0 Sell (28 analysts)
Bull Case
Forward P/E of 17.0x for 11.0% expected EPS growth is a fair price for a regulated utility with a 12.7% trailing revenue growth kicker.
Bear Case
If the P/E reverts to the sector median of 18x but earnings disappoint, the stock could see further downside from its already -10.88% one-year return.
Catalyst to Watch
Watch for upcoming regulatory rate case outcomes or state policy shifts, as these directly impact allowed returns and could re-rate the stock.