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

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 higher today making it today's featured utilities winner. The sector as a whole closed the day up 0.2%. By the end of trading, Public Service Enterprise Group rose 34 cents (1.1%) to $31.54 on heavy volume. Throughout the day, 4.5 million shares of Public Service Enterprise Group exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in a price between $31.05-$31.76 after having opened the day at $31.24 as compared to the previous trading day's close of $31.20. Other companies within the Utilities sector that increased today were: U.S. Geothermal ( HTM), up 6%, China Hydroelectric Corporation ( CHC), up 3.6%, WGL Holdings Incorporated ( WGL), up 3.6%, and Western Gas Equity Partners ( WGP), up 3%.
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Public Service Enterprise Group Incorporated, through its subsidiaries, operates as an energy company primarily in the northeastern and mid Atlantic United States. Public Service Enterprise Group has a market cap of $15.68 billion and is part of the utilities industry. The company has a P/E ratio of 11.1, below the S&P 500 P/E ratio of 17.7. Shares are up 1.3% year to date as of the close of trading on Wednesday. Currently there is one analyst that rates Public Service Enterprise Group a buy, three analysts rate it a sell, and eight 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 increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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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