Core Insights - Public Service Enterprise Group Incorporated (PEG) has a market capitalization of $40.3 billion and operates in electric and gas utility services as well as nuclear power generation [1] Stock Performance - PEG shares have underperformed the broader market over the past 52 weeks, declining by 3.9% compared to a nearly 14% increase in the S&P 500 Index [2] - Year-to-date, PEG shares have shown marginal gains, while the S&P 500 has increased by 1.3% [2] - PEG stock has also lagged behind the State Street Utilities Select Sector SPDR ETF (XLU), which returned 10.7% over the same period [3] Financial Performance - In Q3 2025, PEG reported revenue of $2.37 billion, which was weaker than expected, but adjusted EPS of $1.13 exceeded consensus estimates and increased from $0.90 a year earlier [6] - Adjusted operating earnings for Q3 reached $565 million, primarily driven by $515 million from the PSE&G segment [6] - For the fiscal year ending December 2025, analysts project PEG's adjusted EPS to grow by 9.8% year-over-year to $4.04 [7] Analyst Ratings and Price Targets - Among 21 analysts covering PEG, the consensus rating is a "Moderate Buy," with 10 "Strong Buy" ratings and 11 "Holds" [7] - Bank of America Securities analyst Ross Fowler reaffirmed a "Buy" rating with a price target of $84, while the mean price target of $89.20 suggests a 10.6% premium to current levels [8] - The highest price target of $101 indicates a potential upside of 25.2% from current price levels [8]

Group 1 - Cullen Capital Management's "SCCM Value Equity Strategy" reported a 6.9% return (gross of fees) and 6.8% (net of fees) in Q3 2025, outperforming the Russell 1000 Value's 5.3% and underperforming the S&P 500's 8.1% during the same period [1] - Year-to-date, the strategy achieved a 13.0% return (gross), compared to the Russell 1000 Value's +11.7% and the S&P 500's +14.8% [1] - The fund's top 5 holdings are highlighted as potential best picks for 2025 [1] Group 2 - Sempra (NYSE:SRE) is an energy infrastructure company with a market capitalization of $59.407 billion, closing at $91.02 per share on November 19, 2025 [2] - Sempra's one-month return was -0.86%, and it lost 3.88% of its value over the last 52 weeks [2] - Sempra was sold from the SCCM Value Equity Strategy during the quarter due to challenges in the California utility market, which outweighed the positives from Texas [3] - The company's P/E multiple increased to 20x, making it less compelling compared to the 16x P/E multiple at the time of purchase in 2024 [3] Group 3 - Sempra is not among the 30 Most Popular Stocks Among Hedge Funds, with 47 hedge fund portfolios holding it at the end of Q2 2025, down from 48 in the previous quarter [4] - The potential of Sempra as an investment is acknowledged, but certain AI stocks are considered to offer greater upside potential and less downside risk [4]

Core Viewpoint - Fortis (FTS) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with a consensus outlook suggesting a positive earnings picture for the company [1][3]. Earnings Expectations - The upcoming earnings report is expected to reveal quarterly earnings of $0.51 per share, reflecting a year-over-year increase of +4.1% [3]. - Revenues are projected to reach $2.01 billion, which is a 3.2% increase compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate for Fortis has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for Fortis is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.48%, suggesting a bullish outlook from analysts [12]. Earnings Surprise Prediction - A positive Earnings ESP reading indicates a likely earnings beat, especially when combined with a Zacks Rank of 2 (Buy) [10][12]. - Fortis has a Zacks Rank of 2, enhancing the probability of exceeding the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Fortis exceeded the expected earnings of $0.69 per share by delivering $0.70, resulting in a surprise of +1.45% [13]. - Over the past four quarters, Fortis has consistently beaten consensus EPS estimates [14]. Industry Context - IdaCorp (IDA), another player in the electric utility sector, is expected to report earnings of $1.7 per share, indicating a year-over-year decline of -0.6% [18]. - IdaCorp's revenues are anticipated to be $453.36 million, reflecting a slight increase of 0.5% from the previous year [18].

Market Overview - Volatility has returned to Wall Street due to escalating tensions between Iran and Israel, with the U.S. gradually getting involved [2][5] - The Dow declined by 0.7%, while the S&P 500 and Nasdaq fell by 0.8% and 0.9%, respectively [5] - Recent geopolitical tensions have unsettled markets, which could remain volatile for an extended period [9] Investment Recommendations - It is advisable to invest in safe-haven defensive stocks from the utility sector, including Atmos Energy Corporation (ATO), Fortis, Inc. (FTS), MDU Resources Group, Inc. (MDU), and NiSource Inc. (NI) [3][11] - These stocks are characterized by low beta (greater than 0 but less than 1), high dividend yields, and favorable Zacks Ranks [4][11] Company Profiles Atmos Energy Corporation (ATO) - Engaged in regulated natural gas distribution and storage, serving approximately 3.3 million customers across eight states [10] - Expected earnings growth rate of 6% for the current year, with a Zacks Consensus Estimate improvement of 0.6% over the last 60 days [12] - Current dividend yield is 2.27% and beta is 0.71 [12] Fortis, Inc. (FTS) - Operates in the electric and gas utility business, primarily in Canada, the U.S., and the Caribbean [13] - Expected earnings growth rate of 3.4% for the current year, with a Zacks Consensus Estimate improvement of 3.3% over the last 60 days [14] - Current dividend yield is 3.70% and beta is 0.49 [14] MDU Resources Group, Inc. (MDU) - Provides value-added natural resource products and regulated energy delivery services [15] - Expected earnings growth rate of 5.6% for the current year, with a Zacks Consensus Estimate improvement of 1.1% over the last 60 days [15] - Current dividend yield is 3.18% and beta is 0.72 [15] NiSource Inc. (NI) - Delivers natural gas and electricity to approximately 3.7 million customers across six states [16] - Expected earnings growth rate of 7.4% for the current year, with a Zacks Consensus Estimate improvement of 0.5% over the last 60 days [17] - Current dividend yield is 2.83% and beta is 0.54 [17]