CNP or PEG: Which Is the Better Value Stock Right Now?

Core Viewpoint - The analysis focuses on identifying undervalued stocks in the Utility - Electric Power sector, specifically comparing CenterPoint Energy (CNP) and PSEG (PEG) based on various valuation metrics and earnings outlooks [7]. Valuation Metrics - The Value category of the Style Scores system evaluates companies using key metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share to determine fair value [2]. - CNP has a forward P/E ratio of 19.11 and a PEG ratio of 2.73, while PEG has a forward P/E of 19.94 and a PEG ratio of 3.04, indicating that CNP is currently the superior value option [5][6]. Earnings Outlook - Both CNP and PEG hold a Zacks Rank of 2 (Buy), suggesting positive earnings estimate revisions and an improving earnings outlook for both companies [4]. Additional Valuation Comparisons - CNP has a P/B ratio of 1.98, which is lower than PEG's P/B ratio of 2.32, further supporting the argument that CNP presents a better value opportunity [9].