Momentum Stock Watch: Public Service Enterprise Group Incorporated (PEG)

Company Profile:

Public Service Enterprise Group Incorporated, through its subsidiaries, operates as an energy company primarily in the Northeastern and Mid- Atlantic United States. It operates nuclear, coal, gas, oil-fired, and renewable generation facilities with a generation capacity of approximately 11,681 megawatts. The company sells electricity, natural gas, and other energy-related products. It also transmits electricity; and distributes electricity and gas to residential, commercial, and industrial customers, as well as invests in solar generation projects, and implements energy efficiency and demand response programs. As of December 31, 2016, its electric transmission and distribution system included 24,000 circuit miles; and 851,000 poles, as well as 4 electric distribution headquarters and 5 sub-headquarters. Public Service Enterprise Group Incorporated was founded in 1985 and is headquartered in Newark, New Jersey.

Recent News:

On December 22, 2017, the company announced that Barry H. Ostrowsky, president and chief executive officer, RWJBarnabas Health, has been elected to its board of directors, effective Feb. 20. Mr. Ostrowsky joined Saint Barnabas Medical Center in 1991 as executive vice president and general counsel and served in the same role when Barnabas Health was created in 1996.

The Board of Directors of Public Service Enterprise Group (PEG) declared a $0.43 per share dividend on the outstanding common stock of the company for the fourth quarter of 2017.

It has a price-to-book ratio of 1.96, compared to an industry average at 1.50 and price-to-sales ratio was noted 2.85 in contrast with an overall industry average of 3.52, which indicate that it is undervalued.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

@@@@@

Profitability – Measures the historical price movement of the stock.

@@@@@

Solvency – Measures the solvency of the company based on several ratios.

@@@@@

Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

@@@@@

Conclusion:

PEG’s strengths can be seen in its better profitability and better solvency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI (14) stands at 51.00 with positive bias, while the MACD is trying to cross up. We rate Public Service Enterprise Group Incorporated (PEG) a STRONG BUY.