Here's Why You Should Include PEG Stock in Your Portfolio Now

Public Service Enterprise Group PEG continues to invest consistently in infrastructure modernization to enhance service reliability for its customers. The company is also progressively increasing its nuclear generation. Considering its promising growth prospects, PEG offers a strong investment opportunity in the Zacks Utility Electric Power industry.

Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a solid investment pick at the moment.

PEG’s Growth Outlook & Surprise History

The Zacks Consensus Estimate for PEG’s 2026 earnings per share (EPS) has increased 0.9% to $4.39 per share in the past 30 days.

The Zacks Consensus Estimate for PEG’s 2026 revenues stands at $11.81 billion, which indicates growth of 0.1%.

PEG’s long-term (three to five years) earnings growth rate is 8.11%. The company delivered an average earnings surprise of 4.87% in the last four quarters.

PEG’s Return on Equity

Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, PEG’s ROE is 12.62% compared with its industry’s average of 10.3%. This indicates that the company has been utilizing its funds more constructively than its peers in the industry.

PEG’s Return to Shareholders

Public Service Enterprise Group has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 63 cents per share, resulting in an annualized dividend of $2.52. PEG’s current dividend yield is 3.11%, better than the Zacks S&P 500 Composite's average of 1.08%.

Nuclear Fleet Underpins PEG’s Competitive Position

Public Service Enterprise Group’s strategic emphasis on clean, reliable and carbon-free power generation from its nuclear fleet strengthens its competitive position and financial resilience. For the nine months ended Sept. 30, 2025, nuclear generation totaled nearly 23.8 terawatt-hours (TWh), up from 23.3 TWh in the prior-year period. Total nuclear generation for full-year 2025 is projected at 30-32 TWh.

PEG’s Capital Deployment Plan

Strategic capital spending continues to strengthen PEG’s infrastructure and enhance system resilience. The company invested $1.89 billion during the first nine months of 2025 to support infrastructure modernization, energy efficiency initiatives, electrification efforts and load growth.

PEG plans to make regulated capital investments of approximately $21-$24 billion over 2025-2029. These investments will not only expand and modernize its transmission and distribution network but also accelerate clean energy programs, improving infrastructure resiliency and long-term customer reliability.

Overview of PEG’s Debt Structure

Currently, PEG’s total debt to capital is 57.88%, better than the industry’s average of 61.13%.

PEG’s times interest earned ratio (TIE) at the end of the third quarter of 2025 was 3.3. The TIE ratio greater than one suggests that the company will be able to make its interest payment obligations in the near term without difficulty.

PEG Stock Price Performance

In the past month, PEG shares have rallied 2.8% compared with the industry’s growth of 0.9%.

Other Stocks to Consider

A few other top-ranked stocks from the same industry are Evergy, Inc. EVRG, Edison International EIX and Avista Corporation AVA, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EVRG’s long-term earnings growth rate is 5.78%. The Zacks Consensus Estimate for its 2026 EPS stands at $4.28, which calls for a year-over-year jump of 6.8%.

EIX’s long-term earnings growth rate is 10.93%. The Zacks Consensus Estimate for its 2026 EPS is pegged at $6.27, which implies a year-over-year rise of 2.8%.

AVA’s long-term earnings growth rate is 7.06%. The consensus estimate for its 2026 EPS is pegged at $2.76, which indicates a year-over-year rally of 9.3%.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research