Here's Why PSEG (PEG) is a Strong Momentum Stock

Core Insights - The article discusses the Zacks Rank and Style Scores, which are tools designed to help investors identify stocks with high potential for outperforming the market. The Zacks Rank categorizes stocks into five ratings from 1 (Strong Buy) to 5 (Strong Sell) based on earnings estimate revisions, while Style Scores evaluate stocks based on value, growth, and momentum characteristics [2][14]. Group 1: Zacks Rank and Style Scores - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [14]. - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest rating [2]. - A stock with a 1 (Strong Buy) rating has historically produced an average annual return of +25.41%, significantly outperforming the S&P 500 [5]. Group 2: Investment Strategies - Value investors focus on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales to find attractive investment opportunities [3]. - Growth investors prioritize a company's financial strength and future outlook, using the Growth Style Score to identify stocks with sustainable long-term growth [12]. - Momentum investors look for stocks with upward trends in price or earnings, utilizing the Momentum Style Score to time their investments [20]. Group 3: Company Spotlight - Public Service Enterprise Group Inc. (PEG) - PEG is a diversified energy company primarily involved in regulated electric and gas utility services and nuclear generation, mainly operating in the Northeastern and Mid-Atlantic regions of the U.S. [17]. - Recent analyst activity shows five analysts have revised PEG's earnings estimates higher for fiscal 2024, with the Zacks Consensus Estimate increasing by $0.02 to $3.68 per share [18]. - PEG has a Momentum Style Score of A, and its shares have increased by 1.6% over the past four weeks, making it a stock of interest for momentum investors [24].