After Public Service Enterprise Group Incorporated's (NYSE:PEG) earnings announcement in December 2018, the consensus outlook from analysts appear fairly confident, as a 15% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 2.3%. Currently with trailing-twelve-month earnings of US$1.4b, we can expect this to reach US$1.7b by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Public Service Enterprise Group in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
How will Public Service Enterprise Group perform in the near future?
The longer term view from the 10 analysts covering PEG is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of PEG's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, PEG's earnings should reach US$1.9b, from current levels of US$1.4b, resulting in an annual growth rate of 7.7%. This leads to an EPS of $3.68 in the final year of projections relative to the current EPS of $2.85. Margins are currently sitting at 15%, which is expected to expand to 17% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Public Service Enterprise Group, I've compiled three fundamental aspects you should further research:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is Public Service Enterprise Group worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Public Service Enterprise Group is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Public Service Enterprise Group? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.