Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

We have maintained our Neutral recommendation on Public Service Enterprise Group Inc. (PEG - Analyst Report) on Sep 13, 2013.

Why the Reiteration?

Public Service Enterprise Group has a solid portfolio of regulated and non-regulated utility assets that offer a stable earnings base and substantial long-term growth potential. Despite slow economic growth, second quarter results surpassed the Zacks Consensus Estimate on the back of stepped-up transmission investment, higher capacity prices and an improvement in market prices for energy. Going forward, the low-cost nuclear fleet, and added generating capacities will drive Public Service’s earnings growth.

The company has been taking several measures to improve its financial stability and reduce the overall risk profile. This includes opportunistically monetizing assets that no longer are a strategic fit, reducing international exposure, significantly hedging future generation business and paying down debt. The company has also been pursuing growth opportunities in the core U.S. market and increasing capital allocation in projects that provide good risk-adjusted returns.

Moreover, the company’s strong balance sheet and cash flows provide substantial financial flexibility and a cushion in the present challenging business environment. The company ended the second quarter 2013 with total liquidity of approximately $4.46 billion. Also, the company continues to return cash to its shareholders via common dividend payouts. Currently, the company pays a quarterly dividend of 36 cents with a dividend yield of 4.45%.

Despite these positives, we remain concerned about the increasing cost of coal, higher pension & financial costs, power-price volatility and probable storm restoration.

Other Stocks to Consider

Public Service Enterprise Group presently retains a Zacks Rank #3 (Hold). Stocks that are worth considering in the space are Brookfield Infrastructure Partners L.P. (BIP - Snapshot Report), Integrys Energy Group, Inc. (TEG - Analyst Report) and IdaCorp, Inc. (IDA - Snapshot Report), all with a short-term Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
MODINE MANUF MOD 17.19 +9.21%
VERTEX ENERG VTNR 8.13 +8.98%
CLAYTON WILL CWEI 138.01 +5.72%
KNIGHTSBRIDG VLCCF 13.25 +5.66%
CANADIAN SOL CSIQ 30.83 +5.55%