Core Insights - The article discusses the investment strategy of GARP (Growth at a Reasonable Price) as a hybrid approach that combines elements of both value and growth investing, particularly in uncertain market conditions [2][3][5]. Investment Strategy - GARP investing prioritizes the PEG (Price/Earnings Growth) ratio, which relates a stock's P/E ratio to its future earnings growth rate, providing a more comprehensive view of a stock's potential [5][6]. - A lower PEG ratio, ideally below 1, indicates both undervaluation and future growth potential, making it attractive for GARP investors [6]. Stock Performance - Several stocks have shown significant success using the GARP strategy, including Takeda Pharmaceutical, Five9, LATAM Airlines, and Mizuho Financial Group [4]. - Takeda Pharmaceutical has a Zacks Rank of 1, a Value Score of A, and a long-term expected growth rate of 35% [11]. - Five9 holds a Zacks Rank of 2, a Value Score of B, and a historical growth rate of 19.3% [13]. - LATAM Airlines also has a Zacks Rank of 1, a Value Score of A, and an expected growth rate of 14.8% [14]. - Mizuho Financial has a Zacks Rank of 2, a Value Score of B, and a long-term expected growth rate of 15.9% [16]. Screening Criteria - Effective GARP investing involves screening for stocks with a PEG ratio less than the industry median, a P/E ratio below the industry median, a Zacks Rank of 1 or 2, a market capitalization greater than $1 billion, and an average 20-day trading volume exceeding 50,000 [8][9].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO | | | State or other | | | --- | --- | --- | --- | | | | jurisdiction of | | | Commission | | Incorporation or | I.R.S. Employer | | File ...

Core Viewpoint - In times of market volatility, value investing becomes a preferred strategy as investors seek to buy undervalued stocks when others are selling at lower prices [1][2]. Value Investing Strategy - Value investors capitalize on market uncertainty by purchasing stocks at discounted prices when other investors sell [1]. - The strategy can lead to "value traps" if not understood properly, where stocks underperform due to persistent issues rather than temporary problems [3]. Importance of PEG Ratio - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is a crucial metric for value investors, as a low PEG ratio indicates better value [5]. - Unlike P/E alone, the PEG ratio helps identify a stock's intrinsic value, although it has limitations regarding changing growth rates [5]. Screening Criteria for Value Stocks - Effective screening for value stocks includes criteria such as: - PEG Ratio less than industry median - P/E Ratio less than industry median - Zacks Rank 1 (Strong Buy) or 2 (Buy) - Market Capitalization greater than $1 billion - Average 20-Day Volume greater than 50,000 - Percentage Change in F1 Earnings Estimate Revisions greater than 5% - Value Score of A or B combined with a Zacks Rank of 1, 2, or 3 [6]. Selected Stocks - **Barrick Gold (GOLD)**: A leading gold mining company with 3.9 million ounces of gold and 195,000 tons of copper produced in 2024, holding 89 million ounces of proven and probable gold reserves. It has a Zacks Rank 2 and a Value Score of A, with a five-year expected growth rate of 33.5% [8][9]. - **StoneCo (STNE)**: A financial technology company in Brazil providing various financial services. It has a Zacks Rank 1 and a Value Score of B, with a long-term expected growth rate of 26.3% [9][10]. - **Synovus Financial (SNV)**: A diverse financial services company with a Zacks Rank 2 and a Value Score of A, boasting a five-year expected growth rate of 10.2% [11][12]. - **BGC Group, Inc. (BGC)**: A financial brokerage and technology company with a long-term expected earnings growth rate of 24.7%, holding a Value Score of B and a Zacks Rank of 1 [12][13].

Financial Data and Key Metrics Changes - PSEG reported net income of $1.18 per share for Q1 2025, up from $1.06 per share in 2024, while non-GAAP operating earnings increased to $1.43 per share from $1.31 per share in the previous year [12][13] - Overall results benefited from regulatory recovery and seasonal gas revenues, with a notable increase in nuclear generation performance [5][6] Business Line Data and Key Metrics Changes - PSE&G's net income and non-GAAP operating earnings for Q1 2025 were $546 million, compared to $488 million in 2024, driven by new electric and gas distribution rates [13][14] - The distribution margin increased by $0.20 per share, reflecting the impact of the rate case and recovery of energy efficiency investments [14] - PSEG Power reported net income of $43 million, slightly down from $44 million in Q1 2024, but non-GAAP operating earnings rose to $172 million from $169 million [17] Market Data and Key Metrics Changes - The Basic Generation Service (BGS) default rate is set to increase residential electric bills by 17% starting June 1, largely due to auction results and true-up for prior years [7][8] - PSEG's combined electric and gas bill remains competitive compared to other utilities in New Jersey, with high reliability metrics and customer satisfaction rankings [8][9] Company Strategy and Development Direction - PSEG's capital investment plan for 2025 focuses on infrastructure replacement and modernization, with a five-year capital spending program of $21 billion to $24 billion [11][16] - The company is rolling out the second phase of its Clean Energy Future Energy Efficiency II program to help customers save energy and reduce carbon emissions [9][16] - PSEG is open to potential legislation allowing regulated utilities to build and own new generation, actively engaging with policymakers [10][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by rising energy prices and the need for new generation supply to address resource adequacy [8][10] - The company reiterated its full-year non-GAAP operating earnings guidance of $3.94 to $4.06 per share, reflecting a 9% increase from 2024 results [11][22] - Management emphasized the importance of maintaining affordability for customers amid rising costs and ongoing discussions with the Board of Public Utilities [54][56] Other Important Information - PSEG has total available liquidity of $4.6 billion, including $900 million in cash, following significant bond market access [19][20] - The company is focused on maintaining a low level of variable rate debt, representing approximately 7% of total debt [20] Q&A Session Summary Question: Timeline for large load interconnection and resource adequacy in New Jersey - Management indicated that interconnections are happening at different stages, with ongoing discussions about resource adequacy in New Jersey [26][28] Question: Views on FERC settlement process - Management expressed a preference for a settlement process to address industry needs and ensure non-discriminatory treatment among customer classes [32][34] Question: Demand perspective from large load customers - Management noted continued demand for power, particularly nuclear, despite market fluctuations and ongoing discussions [42][43] Question: Strategy for managing affordability concerns - Management highlighted efforts to provide customer assistance programs and promote energy efficiency to mitigate affordability challenges [56][90] Question: Status of commercial agreements related to nuclear capacity - Management confirmed that discussions are ongoing and not contingent on the FERC process, with continued interest from large load customers [60][61] Question: Potential capacity price outcomes and customer bill growth - Management anticipated that capacity prices would remain stable, with no significant increases expected for customers in the near term [75][80] Question: Offshore wind impacts on transmission planning - Management stated that there are no direct impacts from offshore wind developments, but emphasized the need for accurate planning to address future resource adequacy [82]

Financial Data and Key Metrics Changes - PSEG reported net income of $1.18 per share for Q1 2025, up from $1.06 per share in 2024, while non-GAAP operating earnings increased to $1.43 per share from $1.31 per share in the previous year [15][16] - Overall results benefited from regulatory recovery and seasonal gas revenues, with a notable increase in nuclear generation performance [6][8] Business Line Data and Key Metrics Changes - PSE&G's net income and non-GAAP operating earnings for Q1 2025 were $546 million, compared to $488 million in 2024, driven by new electric and gas distribution rates [16] - Distribution margin increased by $0.20 per share due to the rate case and recovery of energy efficiency investments, while O&M expenses rose by $0.05 per share due to inflation and cold weather [17][18] Market Data and Key Metrics Changes - The Basic Generation Service (BGS) default rate is set to increase residential electric bills by 17% starting June 1, largely due to auction results and true-ups from previous years [9][10] - PSEG's combined electric and gas bill remains competitive compared to other utilities in New Jersey, with high reliability metrics and customer satisfaction rankings [10][11] Company Strategy and Development Direction - PSEG's capital investment plan for 2025 focuses on infrastructure modernization and energy efficiency, with a five-year capital spending program of $21 billion to $24 billion [13][18] - The company is exploring new generation opportunities in New Jersey, including potential legislative changes to allow regulated utilities to build and own new generation [12][60] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by rising energy prices and the need for new generation supply to address resource adequacy issues in New Jersey [10][32] - PSEG reiterated its full-year non-GAAP operating earnings guidance of $3.94 to $4.06 per share, reflecting a 5% to 7% CAGR through 2029 based on capital investment execution [13][24] Other Important Information - PSEG has total available liquidity of $4.6 billion, including $900 million in cash, following significant bond market access [22][23] - The company is actively working with the New Jersey Board of Public Utilities to mitigate customer bill impacts from the BGS increase [9][60] Q&A Session Summary Question: Timeline for large load interconnection and resource adequacy in New Jersey - Management indicated that interconnections are happening at different stages, with ongoing discussions about resource adequacy and legislative changes [29][30][34] Question: Demand perspective from large load customers - Management noted continued demand for power, particularly nuclear, despite market uncertainties [44][45][46] Question: Updates on LiPA contract discussions - Management confirmed ongoing consideration for the contract, with a board meeting scheduled for May 22 to discuss next steps [51][52] Question: Strategy for managing affordability concerns - Management emphasized collaboration with the Board of Public Utilities and proposed solutions to mitigate customer impacts, including energy efficiency programs [58][60][99] Question: Status of nuclear capacity contracts with data centers - Management clarified that discussions are not contingent on the FERC process, but that flexibility is desired [64][67] Question: Capacity pricing and customer bill growth - Management expressed expectations for capacity prices to remain stable, with no significant increases anticipated for customers [83][84][88] Question: Offshore wind impacts on transmission planning - Management stated no direct impacts from exiting offshore wind, but emphasized the need for accurate planning to address future resource adequacy [89][90]

PSEG (PEG) came out with quarterly earnings of $1.43 per share, missing the Zacks Consensus Estimate of $1.46 per share. This compares to earnings of $1.31 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.05%. A quarter ago, it was expected that this parent company of PSEG Power and Public Service Electric & Gas Co. Would post earnings of $0.83 per share when it actually produced earnings of $0.84, delivering a surprise of 1 ...

Financial Performance - PSEG's Q1 2025 net income was $1.18 per share[13] - PSEG's Q1 2025 non-GAAP operating earnings were $1.43 per share[13] - PSEG maintains its 2025 non-GAAP operating earnings guidance of $3.94 - $4.06 per share, representing approximately a 9% increase at the midpoint over 2024 results[16] - PSEG's long-term non-GAAP earnings growth outlook is 5%-7%, based on the midpoint of the 2025 guidance range[19] Capital Investment and Dividends - PSE&G invested approximately $0.8 billion in Q1 2025[13,31] - PSE&G's full-year capital spending plan is approximately $3.8 billion[13,31] - PSE&G commenced a Clean Energy Future - Energy Efficiency II Program (CEF-EE II), representing approximately $2.9 billion in approved spending over a six-year period[13,31] - The indicative 2025 annual common dividend increased by 5% to $2.52 per share[13,16] - PSEG's total capital program is projected to be $22.5 billion - $26 billion for 2025-2029, with over 90% from regulated activities[19] PSE&G Operations - Residential electric and gas customer count each grew by approximately 1% for the trailing 12 months ended March 31, 2025[31] - PSE&G replaced approximately 48 miles of gas main and approximately 5,080 associated gas services in Q1 2025[31] PSEG Power & Other - PSEG Nuclear achieved a capacity factor of 99.9% for Q1 2025[13,32]

Financial Performance - PSEG reported a net income of $589 million for Q1 2025, an increase from $532 million in Q1 2024, resulting in earnings per share of $1.18 compared to $1.06 in the previous year[2]. - Non-GAAP operating earnings for Q1 2025 were $718 million, up from $657 million in Q1 2024, with earnings per share of $1.43 compared to $1.31[2]. - The increase in PSE&G's net income reflects new electric and gas base distribution rates implemented in October 2024, contributing to higher revenue collection during winter months[8]. - Net income for Q1 2025 was $589 million, compared to $532 million in Q1 2024, reflecting an increase of 10.7%[27]. - Operating earnings (non-GAAP) for Q1 2025 were $718 million, up from $657 million in Q1 2024, indicating a growth of 9.3%[38]. - Operating revenues for the three months ended March 31, 2025, increased to $3,222 million, up from $2,760 million in the same period of 2024, representing a growth of 16.7%[22]. Capital Investment and Growth Outlook - The company maintains its 2025 non-GAAP operating earnings guidance of $3.94 - $4.06 per share[1]. - PSEG's regulated capital investment plan for 2025 focuses on infrastructure replacement and modernization, with over $3 billion invested in electric and gas systems in recent years[4][8]. - PSEG aims for a compound annual growth outlook of 5% to 7% for non-GAAP operating earnings from 2025 to 2029[6]. Sales and Demand - Electric sales for residential customers increased by 6% to 3,290 million kWh in Q1 2025 compared to Q1 2024[29]. - Total gas sales increased by 7% to 1,372 million therms in Q1 2025, with residential sales rising by 14%[31]. - The company experienced a quarterly increase in large load inquiries for new service connections, totaling over 6,400 MW of capacity requested as of March 31[4]. Expenses and Debt - Total operating expenses for Q1 2025 were $2,425 million, compared to $2,075 million in Q1 2024, an increase of 16.9%[22]. - The company reported a total debt of $23,398 million as of March 31, 2025, up from $22,707 million at the end of 2024[25]. Stock Performance and Dividends - PSEG declared a first-quarter common stock dividend of $0.63 per share, representing an indicative annual rate of $2.52 per share, a 5% increase for 2025[6]. - The stock price at the end of Q1 2025 was $82.30, compared to $66.78 at the end of Q1 2024, reflecting a year-over-year increase of 23.2%[36]. - The dividend yield for Q1 2025 was 3.1%, down from 3.6% in Q1 2024[36]. - The weighted average common shares outstanding for Q1 2025 were 500 million, unchanged from Q1 2024[38]. Operational Efficiency - PSEG Nuclear generated approximately 8.4 terawatt hours of energy in Q1 2025, achieving a capacity factor of 99.9%[6]. - PSEG's focus on cost management and financial flexibility supports its strategic goals and capital investment plans[6].

Core Viewpoint - PSEG is expected to report quarterly earnings of $1.46 per share, an 11.5% increase year-over-year, with revenues projected at $2.85 billion, reflecting a 3.3% increase from the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been revised downward by 2.6% over the past 30 days, indicating a reassessment by analysts [2]. - Revisions to earnings estimates are crucial for predicting investor actions, as empirical research shows a strong correlation between earnings estimate trends and short-term stock performance [3]. Key Metrics - Analysts estimate 'Revenue- PSE&G' will reach $2.50 billion, a 7.2% increase from the prior-year quarter [5]. - The consensus for 'Revenue- Power & Other' is $591.45 million, indicating a significant decrease of 32.2% from the prior-year quarter [5]. - 'Electric sales' are projected at 10,130.81 KWH, up from 9,731 KWH in the previous year [5]. Stock Performance - PSEG shares have increased by 1.3% in the past month, contrasting with the Zacks S&P 500 composite's decline of 4.8% [6]. - PSEG holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [6].

NEWARK, N.J., April 22, 2025 /PRNewswire/ -- The Board of Directors of Public Service Enterprise Group (NYSE: PEG) today declared a $0.63 per share dividend on the outstanding common stock of the company for the second quarter of 2025.All dividends for the second quarter are payable on or before June 30, 2025, to shareholders of record on June 9, 2025.About PSEGPublic Service Enterprise Group (PSEG) (NYSE: PEG) is a predominantly regulated infrastructure company operating New Jersey's largest transmission a ...