PNW vs. PEG: Which Stock Should Value Investors Buy Now?

Utility - Electric Power Sector Analysis - Investors may consider Pinnacle West (PNW) or PSEG (PEG) in the Utility - Electric Power sector [1] - Value investors analyze traditional metrics to determine if a company is undervalued at its current share price [2] Company Rankings and Earnings Outlook - Pinnacle West has a Zacks Rank of 2 (Buy) while PSEG has a Zacks Rank of 3 (Hold) [3] - PNW has an improving earnings outlook due to positive revisions in earnings estimates [3] Valuation Metrics - Key metrics for value investors include P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - PNW has a Value grade of B while PEG has a Value grade of D [5] - PNW's forward P/E ratio is 16.67 compared to PEG's 23.39 [7] - PNW's PEG ratio is 2.03 while PEG's is 3.15 [7] - PNW's P/B ratio is 1.45 compared to PEG's 2.66 [8] Investment Strategy - Pairing a strong Zacks Rank with an impressive Value grade can produce the best returns [6] - PNW has stronger estimate revision activity and more attractive valuation metrics than PEG [9]