Public Service Enterprise: Look Elsewhere For Value

2025-02-03 05:34:21 ET

Summary

• Despite decent performance in recent years, Public Service Enterprise Group is a sell due to high capex commitments, single-state risks, an unimpressive dividend, and a premium valuation.
• Alternatives like Consolidated Edison offer much better risk-adjusted returns, offering stable cash flows, higher dividend yields, and more favorable entry points.
• While there's no harm for existing shareholders to hold on to past gains, new investors should consider more favorable options in the Multi-Utilities space.

After a strong 2024 that saw Utilities rank fourth in total return, the sector has fallen behind much of the broader market in recent weeks. Among its five industry classifications, Multi-Utilities has particularly lagged year to date—in other words, it’s an underperforming industry in an underperforming sector....

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