The Bullish Case for Public Service Enterprise Group (PEG)

by Christian Tharp, CMT

A key resistance level has formed in the chart of Public Service Enterprise Group (PEG) and a breakout could soon occur…

 

Public Service Enterprise Group (PEG) is the holding company for a regulated utility (PSE&G), a merchant power generation owner (PSEG Power), and an energy investment firm (PSEG Enterprise).

The company has a strong portfolio of regulated and non-regulated utility assets that offer stable earnings and long-term growth potential. PEG has invested over $3.5 billion to promote clean energy in New Jersey.

From a fundamental standpoint, the company had long-term debt of $15 billion as of the end of the quarter, but only $966 million. The company is quite profitable though with a net margin of 19.7%.

Earnings were slightly down last quarter, while revenues beat expectations and were up 3% year over year. Earnings are expected to fall this quarter, but rebound in the next quarter. The stock is fairly valued with a P/E of 15.8.

PEG is up slightly for the year, but has seen recent momentum. This has resulted in a “Strong Buy” rating in our POWR Ratings system, which leads us to its recent price movement.

Take a look at the 1-year chart of PEG below with added notations…

See chart and continue reading at STOCKNEWS.com

(Want free training resources? Check our our training section for videos and tips!)

 

Good luck!

Christian Tharp, CMT

www.todaysbigstock.com 

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