Public Service Enterprise Group Incorporated (PEG): A Bull Case Theory

We came across a bullish thesis on Public Service Enterprise Group Incorporated (PEG) on Substack by Stock Analysis Compilation. In this article, we will summarize the bulls’ thesis on PEG. Public Service Enterprise Group Incorporated (PEG)’s share was trading at $91.52 as of Dec 5^th. PEG’s trailing and forward P/E were 22.49 and 22.57 respectively according to Yahoo Finance.

Public Service Enterprise Group (PEG) presents a compelling investment opportunity as a “hybrid” utility that combines the stability of regulated operations with the significant growth potential of its unregulated nuclear power assets. The company’s regulated utilities provide consistent returns through steady rate base growth, ensuring a reliable foundation for earnings. Meanwhile, its unregulated nuclear plants are positioned to capture substantial upside amid rising power prices and growing demand for carbon-free, reliable electricity.

The nuclear business stands out as a hidden value driver, particularly as the market increasingly rewards clean energy sources with premium pricing. Peer companies have demonstrated the profitability of long-term data center sales contracts, and PEG is actively pursuing similar agreements that could further enhance its earnings trajectory. These contracts, coupled with favorable market dynamics, could unlock an estimated 20% or greater upside to the company’s earnings in the coming years.

This dual-focus strategy positions PEG as an attractive play for both income-focused and growth-oriented investors. Its steady utility returns provide downside protection, while the nuclear segment offers transformational growth potential. The combination of these factors makes PSE&G a well-balanced investment with substantial long-term upside.

Public Service Enterprise Group Incorporated (PEG) is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held PEG at the end of the third quarter which was 34 in the previous quarter. While we acknowledge the risk and potential of PEG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PEG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.