Valued at a market cap of $41.2 billion, Public Service Enterprise Group Incorporated (PEG) is a New Jersey-based electric and gas utility holding company that primarily operates through its regulated subsidiary, PSE&G. The company generates most of its earnings from state-regulated electricity and gas distribution, providing stable and predictable cash flows, while also operating a portfolio of power generation assets, including nuclear plants.
The company is expected to announce its Q1 earnings for FY2026 in the near future. Before this event, analysts expect this utility company to report a profit of $1.49 per share, up 4.2% from $1.43 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in three of the last four quarters, while missing on another occasion.
For the current fiscal year, ending in December, analysts expect PEG to report a profit of $4.36 per share, up 7.7% from $4.05 per share in fiscal 2025. Its EPS is expected to further grow 7.8% year over year to $4.70 in fiscal 2027.
PEG has soared 6.4% over the past 52 weeks, considerably underperforming both the S&P 500 Index's ($SPX) 36.1% return and the State Street Utilities Select Sector SPDR ETF’s (XLU) 28% uptick over the same time period.
Public Service Enterprise Group has underperformed the broader market over the past year primarily due to its defensive, low-growth utility profile, which has lagged in a market favoring high-growth sectors. Investor sentiment has been further weighed down by cautious forward guidance and heavy capital spending requirements for infrastructure and grid upgrades, which can limit near-term returns.
Wall Street analysts are moderately optimistic about PEG’s stock, with an overall "Moderate Buy" rating. Among 21 analysts covering the stock, ten recommend "Strong Buy," and 11 indicate "Hold.” The mean price target for PEG is $91.32, indicating a 10.4% potential upside from the current levels.
On the date of publication, Kritika Sarmah 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.
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