Public Service Enterprise Group Inc.
) to beat expectations when it reports first-quarter 2014
financial results on May 1. Last quarter, the company registered
a positive earnings surprise of 4.26%.
Our proven model shows that Public Service Enterprise is
likely to beat earnings because it has the right combination of
two key ingredients. A stock needs to have both a positive or
Earnings ESP (Expected Surprise Prediction) and a Zacks Rank #1,
2 or 3 for this to happen.
Positive Zacks ESP:
Public Service Enterprise has a Zacks ESP of +7.61%. This is
because the Most Accurate estimate stands at 99 cents per share
while the Zacks Consensus Estimate is 92 cents. This is a
significant and leading indicator of a likely positive earnings
surprise for the shares.
Zacks Rank #2 (Buy):
We note that stocks with Zacks Ranks #1, 2 and 3 have a
significantly higher chance of beating earnings. The Sell-rated
stocks (#4 and 5) should never be considered going into an
The combination of Public Service Enterprise's Zacks Rank #2
(Buy) and +7.61% ESP makes us confident of a possible earnings
beat on May 1. In fact, Public Service Enterprise delivered
positive earnings surprises in the last four quarters with an
average beat of 7.82%.
What is Driving the Better-than-Expected
Public Service Enterprise operates as an energy company
primarily in the Northeastern and Mid-Atlantic United States. The
company expects to generate strong earnings mainly due to higher
demand in its service territories on the back of a severe
The company is also optimistic about a recovering Northeastern
economy. This will not only lead to lower unemployment rates but
also increasing demand for utility services. All these will boost
the revenues of the company.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements,
i.e., a positive Zacks Earnings ESP and a Zacks Rank #1, #2 or
NRG Yield, Inc.
) has an Earnings ESP of +23.53 % and holds a Zacks Rank #1
Alliant Energy Corp.
) has an Earnings ESP of +1.30 % and holds a Zacks Rank #2 (Buy).
) has an Earnings ESP of +28.57 % and holds a Zacks Rank #2
CALPINE CORP (CPN): Free Stock Analysis
ALLIANT ENGY CP (LNT): Free Stock Analysis
NRG YIELD INC-A (NYLD): Free Stock Analysis
PUBLIC SV ENTRP (PEG): Free Stock Analysis
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