Should You Buy Public Service Enterprise Group Incorporated (PEG)?
Public Service Enterprise Group Incorporated (NYSE:PEG) saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine PEG’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. Check out our latest analysis for Public Service Enterprise Group
Is PEG still cheap?
PEG appears to be overvalued by 59% at the moment, based on my discounted cash flow valuation. Not the best news for investors looking to buy! The intrinsic value of the stock is $19.28, but it is currently valued by the market at $46.52. In addition to this, it seems like PEG’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because PEG’s stock is less volatile than the wider market given its low beta.
What does the future of PEG look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares.Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at PEG future expectations. With profit expected to more than double over the next couple of years, the future seems bright for PEG. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? PEG’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe PEG should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping tabs on PEG for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for PEG, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Public Service Enterprise Group. You can find everything you need to know about PEG in the latest infographic research report. If you are no longer interested in Public Service Enterprise Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
