Public Service Enterprise Group: A Risky Investment in Uncertain Times

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Recently, PSEG has become one of the riskier investments due to the uncertainty of energy prices in the current market. Although it has a high price point, PSEG still remains a viable option for investors who are willing to take on the risk. PSEG has several subsidiaries, all of which make up the corporation’s diverse portfolio. Its subsidiaries include Public ($NYSE:PEG) Service Electric & Gas Company (PSE&G), Power Generation (PSEG Power), Energy Resources & Trade (PSEG ER&T) and Asset Management. PSE&G is the largest subsidiary and operates as a regulated electric and gas utility in New Jersey. Power Generation operates as an unregulated merchant power generator, while Energy Resources & Trade handles fuel purchasing and trading for PSE&G. Asset Management provides capital support and asset management services for the company’s other businesses. In uncertain times, PSEG offers a unique opportunity to investors who are willing to take on the risk of investing in an energy company. PSEG’s stock price is highly volatile and subject to significant swings in response to changes in energy prices, as well as other economic factors.

However, if energy prices remain stable or increase, PSEG could be a great long-term investment. Although investing in PSEG carries a high price point and comes with some risks, it is still worth considering as part of a diversified portfolio.

Stock Price

Investors in Public Service Enterprise Group (PSEG) have been on the edge of their seats lately. On Thursday, its stock opened at $60.6 and closed at $59.8, down by 1.6% from the prior closing price of 60.8. This marks a worrying trend for the company, considering that the market has been seeing remarkable growth lately. It remains to be seen whether PSEG will be able to weather the storm caused by the recent market volatility. Investor confidence in the company is likely to be further affected by the ongoing pandemic and the economic downturn it has prompted.

As such, PSEG has become a risky investment in uncertain times, with investors having to weigh both short-term and long-term outcomes before making an investment decision. Given the current market conditions, investors should consider their options carefully before deciding whether to invest in PSEG or not. With the right approach and an eye for risk management, however, it could still be a wise decision to invest in PSEG in the long-term. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for PEG. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for PEG. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for PEG. More…

Key Ratios Snapshot

Some of the financial key ratios for PEG are shown below. More…

Analysis

At GoodWhale, we have conducted a thorough analysis of the fundamentals of PUBLIC SERVICE ENTERPRISE to give our users an accurate assessment of the risk level of this investment. After our evaluation, we have concluded that the risk rating of this investment is medium. We have also identified 3 potential risk warnings in the income statement, balance sheet, and cashflow statement of PUBLIC SERVICE ENTERPRISE. To get more information on these risks, become a registered user on GoodWhale and check out our detailed analysis. More…

Peers

As of 2018, the top four competitors of Public Service Enterprise Group Inc (PSEG) are Exelon Corp, South Jersey Industries Inc, Consolidated Edison Inc, and National Grid plc. These companies compete with PSEG in the electric and gas utility industry. PSG is a diversified energy company that operates through its subsidiaries. The company’s businesses include electric and gas utility operations, power generation, and energy services.

– Exelon Corp ($NASDAQ:EXC)

Exelon Corporation is an American energy company headquartered in the Chase Tower in the Chicago Loop area of Chicago, Illinois, United States, and incorporated in Pennsylvania. It was created in October 2000 by the merger of PECO Energy Company and Unicom Corp. Exelon operates utilities in Illinois, Pennsylvania, Maryland, Delaware, and Washington, D.C.

– South Jersey Industries Inc ($NYSE:SJI)

South Jersey Industries Inc is a diversified energy services holding company with subsidiaries engaged in the production, transmission, storage and distribution of natural gas and electricity, as well as providing energy services. As of 2022, the company had a market cap of 4.2 billion and a return on equity of 9.62%. The company’s primary subsidiaries include South Jersey Gas, South Jersey Energy Solutions and South Jersey Resources Group. South Jersey Industries was founded in 1947 and is headquartered in Folsom, New Jersey.

– Consolidated Edison Inc ($NYSE:ED)

Consolidated Edison, Inc. is a holding company that provides energy services through its subsidiaries. The Company’s segments include Consolidated Edison Company of New York, Inc. (CECONY), which consists of Consolidated Edison Company of New York, Inc. and Orange and Rockland Utilities, Inc. (O&R); Consolidated Edison Solutions, Inc. (CES), a provider of energy services and energy-efficiency products; and Consolidated Edison Development, Inc. (CED), an owner and operator of renewable energy projects and provider of other energy services. It serves residential, commercial, and governmental customers in New York City, Westchester County, and parts of northern New Jersey.

Summary

Public Service Enterprise Group (PSEG) is a diversified energy company operating primarily in the Mid-Atlantic and Northeastern regions of the United States. Investing in PSEG comes with both attractive opportunities and risks. On the positive side, PSEG is an established and high-yielding utility stock with strong fundamentals and a history of steady dividend payments.

Additionally, PSEG has a solid balance sheet and is well positioned to benefit from the strong growth potential of the clean energy industry. On the downside, PSEG shares are relatively expensive compared to its peers and are subject to the regulatory challenges associated with the utility industry. For investors looking for exposure to clean energy while earning steady income, PSEG could be a good option, although it may be prudent to wait for a better entry point.