Public Service Enterprise Group's Strategic Shift
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy PEG?
Source: CNBC
- Trendline Breakout: Public Service Enterprise Group (PEG) recently broke above its descending trendline that had constrained rallies since mid-2025, confirming a shift in short-term momentum as the stock stabilizes above $80, with projections indicating a potential rise toward the $90 zone, reflecting growing market confidence in its future growth.
- Nuclear Asset Valuation: As nuclear power regains its premium status for data center demand, PEG's asset base is being reassessed as significantly more valuable than its current valuation, creating a strategically valuable combination of stable regulated cash flows and unregulated nuclear optionality.
- Financial Metrics Comparison: PEG's forward P/E ratio stands at approximately 18x, in line with the industry average, while its expected EPS growth rate of 8.6% surpasses the industry’s 7.7%, indicating a competitive edge in growth potential, with net margins also exceeding industry levels.
- Capital Allocation Strategy: Management has strategically avoided offshore wind investments, directing capital towards transmission, upgrades, and maintaining balance sheet strength, which effectively reduces cash flow risks in the nuclear economy and further solidifies PEG's market position.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PEG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PEG
Wall Street analysts forecast PEG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PEG is 89.77 USD with a low forecast of 83.00 USD and a high forecast of 98.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
8 Buy
4 Hold
0 Sell
Moderate Buy
Current: 79.790
Low
83.00
Averages
89.77
High
98.00
Current: 79.790
Low
83.00
Averages
89.77
High
98.00
About PEG
Public Service Enterprise Group Incorporated is a regulated infrastructure company operating New Jersey’s transmission and distribution utility, serving approximately 2.4 million electric and 1.9 million natural gas customers. The Company also owns an independent fleet of 3,758 MW of carbon-free, baseload nuclear power-generating units. The Company principally conducts its business through two wholly owned subsidiaries, Public Service Electric and Gas Company (PSE&G) and PSEG Power LLC (PSEG Power). The Company’s segments include PSE&G and PSEG Power. PSE&G is a public utility engaged principally in the transmission of electricity and distribution of electricity and natural gas in certain areas of New Jersey. PSEG Power is an energy supply company that consists of the operations of merchant nuclear generating assets and fuel supply functions engaged in competitive energy sales via its principal direct wholly owned subsidiaries. The Company also has other wholly owned subsidiaries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Public Service Enterprise Group's Strategic Shift
- Trendline Breakout: Public Service Enterprise Group (PEG) recently broke above its descending trendline that had constrained rallies since mid-2025, confirming a shift in short-term momentum as the stock stabilizes above $80, with projections indicating a potential rise toward the $90 zone, reflecting growing market confidence in its future growth.
- Nuclear Asset Valuation: As nuclear power regains its premium status for data center demand, PEG's asset base is being reassessed as significantly more valuable than its current valuation, creating a strategically valuable combination of stable regulated cash flows and unregulated nuclear optionality.
- Financial Metrics Comparison: PEG's forward P/E ratio stands at approximately 18x, in line with the industry average, while its expected EPS growth rate of 8.6% surpasses the industry’s 7.7%, indicating a competitive edge in growth potential, with net margins also exceeding industry levels.
- Capital Allocation Strategy: Management has strategically avoided offshore wind investments, directing capital towards transmission, upgrades, and maintaining balance sheet strength, which effectively reduces cash flow risks in the nuclear economy and further solidifies PEG's market position.
See More
PSEG to Host Q4 and Full Year 2025 Earnings Call on February 26
- Earnings Call Schedule: PSEG will hold its Q4 and full year 2025 earnings call on February 26, 2026, at 11:00 a.m. ET, where management will discuss financial results, guidance, and capital investments, aiming to enhance communication with the financial community.
- Investor Relations Website: The audio webcast and accompanying presentation materials will be available on PSEG's Investor Relations website under the Investor News and Events section, ensuring timely access to important information and enhancing transparency for investors.
- Nuclear Asset Overview: PSEG owns an independent fleet of 3,758 MW of carbon-free baseload nuclear power generating units in NJ and PA, serving approximately 2.4 million electric and 1.9 million natural gas customers, showcasing its leadership in renewable energy.
- Sustainability Achievements: PSEG has been named to the Dow Jones Sustainability North America Index for 17 consecutive years, reflecting its commitment to advancing cleaner, safer, and more reliable energy, further solidifying its position in the S&P 500 Index.
See More
PSEG to Host Q4 and Full Year 2025 Earnings Call on February 26
- Earnings Call Schedule: PSEG will host its Q4 and full year 2025 earnings call on February 26, 2026, at 11:00 AM ET, where management will discuss financial results, guidance, and capital investments, aiming to enhance communication with the financial community.
- Investor Relations Website: The audio webcast and accompanying presentation materials will be available on PSEG's Investor Relations website under the Investor News and Events section, ensuring investors can access key information promptly.
- Company Overview: PSEG operates New Jersey's largest electric and gas utility, serving approximately 2.4 million electric and 1.9 million gas customers, while owning a fleet of 3,758 MW of carbon-free nuclear power, demonstrating its commitment to renewable energy.
- Sustainability Achievements: PSEG has been named to the Dow Jones Sustainability North America Index for 17 consecutive years, showcasing its outstanding performance in environmental, social, and governance (ESG) criteria, further solidifying its position in the S&P 500 Index.
See More
Caution for Utility Stocks: Political Factors May Impact Stock Returns.
- Political Backlash: Early indications of a political backlash against utility companies have emerged in New Jersey and New York.
- Sector Challenges: This situation may signal a challenging year ahead for the utility sector as public sentiment shifts.
See More
Public Service Enterprise Group Downgraded to Neutral with $85 Price Target by J.P. Morgan
- Rating Downgrade: J.P. Morgan downgraded Public Service Enterprise Group from Overweight to Neutral with a price target cut from $88 to $85, reflecting ongoing political and regulatory uncertainty in New Jersey despite some optimism from Governor Sherrill's inauguration speech.
- Regulatory Risks: Analyst Jeremy Tonet highlighted that while New Jersey's plans remain unclear, he cannot rule out further deterioration in the state's regulatory environment, particularly given the increasing scrutiny on regulated returns and overall ratemaking components.
- Nuclear Contract Outlook: Despite political backlash, Tonet noted that approximately one-third of PSEG's nuclear capacity is located in Pennsylvania, where contract opportunities could still arise, partially offsetting risks from New Jersey.
- Potential for Price Increases: Although affordability issues in New Jersey may limit PEG's upside, Tonet still sees potential for rising power prices to provide some revenue benefits for the company.
See More
PSEG Appoints Geisha J. Williams to Board of Directors Effective March 1, 2026
- New Board Member: PSEG announced that Geisha J. Williams will join its Board of Directors effective March 1, 2026, bringing over 35 years of energy industry experience that is expected to positively impact the company's strategy and operations.
- Rich Leadership Experience: Williams previously served as CEO of PG&E, overseeing one of the largest electric and gas utilities in the U.S., showcasing exceptional strategic leadership that is anticipated to enhance PSEG's operational efficiency.
- Local Community Insight: As a resident of Union City, New Jersey, Williams has a deep understanding of the communities served by PSEG, which will aid the company in better meeting customer needs and strengthening customer relationships.
- Board Diversity: Williams is the fifth independent director elected to PSEG's Board since April 2022, reflecting the company's strategic goal of pursuing diversity and rich experience in its board composition.
See More
Public Service Enterprise Group's Strategic Shift
- Trendline Breakout: Public Service Enterprise Group (PEG) recently broke above its descending trendline that had constrained rallies since mid-2025, confirming a shift in short-term momentum as the stock stabilizes above $80, with projections indicating a potential rise toward the $90 zone, reflecting growing market confidence in its future growth.
- Nuclear Asset Valuation: As nuclear power regains its premium status for data center demand, PEG's asset base is being reassessed as significantly more valuable than its current valuation, creating a strategically valuable combination of stable regulated cash flows and unregulated nuclear optionality.
- Financial Metrics Comparison: PEG's forward P/E ratio stands at approximately 18x, in line with the industry average, while its expected EPS growth rate of 8.6% surpasses the industry’s 7.7%, indicating a competitive edge in growth potential, with net margins also exceeding industry levels.
- Capital Allocation Strategy: Management has strategically avoided offshore wind investments, directing capital towards transmission, upgrades, and maintaining balance sheet strength, which effectively reduces cash flow risks in the nuclear economy and further solidifies PEG's market position.
See More
PSEG to Host Q4 and Full Year 2025 Earnings Call on February 26
- Earnings Call Schedule: PSEG will hold its Q4 and full year 2025 earnings call on February 26, 2026, at 11:00 a.m. ET, where management will discuss financial results, guidance, and capital investments, aiming to enhance communication with the financial community.
- Investor Relations Website: The audio webcast and accompanying presentation materials will be available on PSEG's Investor Relations website under the Investor News and Events section, ensuring timely access to important information and enhancing transparency for investors.
- Nuclear Asset Overview: PSEG owns an independent fleet of 3,758 MW of carbon-free baseload nuclear power generating units in NJ and PA, serving approximately 2.4 million electric and 1.9 million natural gas customers, showcasing its leadership in renewable energy.
- Sustainability Achievements: PSEG has been named to the Dow Jones Sustainability North America Index for 17 consecutive years, reflecting its commitment to advancing cleaner, safer, and more reliable energy, further solidifying its position in the S&P 500 Index.
See More
PSEG to Host Q4 and Full Year 2025 Earnings Call on February 26
- Earnings Call Schedule: PSEG will host its Q4 and full year 2025 earnings call on February 26, 2026, at 11:00 AM ET, where management will discuss financial results, guidance, and capital investments, aiming to enhance communication with the financial community.
- Investor Relations Website: The audio webcast and accompanying presentation materials will be available on PSEG's Investor Relations website under the Investor News and Events section, ensuring investors can access key information promptly.
- Company Overview: PSEG operates New Jersey's largest electric and gas utility, serving approximately 2.4 million electric and 1.9 million gas customers, while owning a fleet of 3,758 MW of carbon-free nuclear power, demonstrating its commitment to renewable energy.
- Sustainability Achievements: PSEG has been named to the Dow Jones Sustainability North America Index for 17 consecutive years, showcasing its outstanding performance in environmental, social, and governance (ESG) criteria, further solidifying its position in the S&P 500 Index.
See More
Caution for Utility Stocks: Political Factors May Impact Stock Returns.
- Political Backlash: Early indications of a political backlash against utility companies have emerged in New Jersey and New York.
- Sector Challenges: This situation may signal a challenging year ahead for the utility sector as public sentiment shifts.
See More
Public Service Enterprise Group Downgraded to Neutral with $85 Price Target by J.P. Morgan
- Rating Downgrade: J.P. Morgan downgraded Public Service Enterprise Group from Overweight to Neutral with a price target cut from $88 to $85, reflecting ongoing political and regulatory uncertainty in New Jersey despite some optimism from Governor Sherrill's inauguration speech.
- Regulatory Risks: Analyst Jeremy Tonet highlighted that while New Jersey's plans remain unclear, he cannot rule out further deterioration in the state's regulatory environment, particularly given the increasing scrutiny on regulated returns and overall ratemaking components.
- Nuclear Contract Outlook: Despite political backlash, Tonet noted that approximately one-third of PSEG's nuclear capacity is located in Pennsylvania, where contract opportunities could still arise, partially offsetting risks from New Jersey.
- Potential for Price Increases: Although affordability issues in New Jersey may limit PEG's upside, Tonet still sees potential for rising power prices to provide some revenue benefits for the company.
See More
PSEG Appoints Geisha J. Williams to Board of Directors Effective March 1, 2026
- New Board Member: PSEG announced that Geisha J. Williams will join its Board of Directors effective March 1, 2026, bringing over 35 years of energy industry experience that is expected to positively impact the company's strategy and operations.
- Rich Leadership Experience: Williams previously served as CEO of PG&E, overseeing one of the largest electric and gas utilities in the U.S., showcasing exceptional strategic leadership that is anticipated to enhance PSEG's operational efficiency.
- Local Community Insight: As a resident of Union City, New Jersey, Williams has a deep understanding of the communities served by PSEG, which will aid the company in better meeting customer needs and strengthening customer relationships.
- Board Diversity: Williams is the fifth independent director elected to PSEG's Board since April 2022, reflecting the company's strategic goal of pursuing diversity and rich experience in its board composition.
See More
