Public Service Enterprise Group Inc (PEG): Today's Featured Utilities Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Public Service Enterprise Group ( PEG) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day up 0.2%. By the end of trading, Public Service Enterprise Group fell 35 cents (-1.1%) to $32.32 on average volume. Throughout the day, 2.9 million shares of Public Service Enterprise Group exchanged hands as compared to its average daily volume of 3.1 million shares. The stock ranged in price between $32.12-$32.49 after having opened the day at $32.39 as compared to the previous trading day's close of $32.67. Other companies within the Utilities sector that declined today were: Delta Natural Gas Company ( DGAS), down 4.4%, Transportadora de Gas del Sur ( TGS), down 2.7%, Clean Energy Fuels Corporation ( CLNE), down 2.6%, and Artesian Resource Corporation ( ARTNA), down 2.3%.

Public Service Enterprise Group Incorporated, through its subsidiaries, operates in the energy industry primarily in the northeastern and mid Atlantic United States. Public Service Enterprise Group has a market cap of $16.46 billion and is part of the utilities industry. The company has a P/E ratio of 11.5, below the average utilities industry P/E ratio of 12.4 and below the S&P 500 P/E ratio of 17.7. Shares are down 0.9% year to date as of the close of trading on Friday. Currently there is one analyst that rates Public Service Enterprise Group a buy, one analyst rates it a sell, and 11 rate it a hold.

TheStreet Ratings rates Public Service Enterprise Group as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the positive front, Ocean Power Technologies ( OPTT), up 6.4%, Inergy L.P ( NRGY), up 5.8%, China Hydroelectric Corporation ( CHC), up 5.2%, and Centrais Eletricas Brasileiras ( EBR), up 3.6%, were all gainers within the utilities sector with Calpine ( CPN) being today's featured utilities sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the utilities sector could consider Utilities Select Sector SPDR ( XLU) while those bearish on the utilities sector could consider ProShares UltraShort Utilities ( SDP).
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