Stock Analysis | Public Service Outlook - Weak Technicals, Mixed Analysts, and Key Fundamentals

Market Snapshot

Takeaway: Public Service (PEG) is in a technically weak position with bearish signals dominating, and recent price action reflects a 4.79% decline. The stock is currently advised to be avoided based on technical indicators.

News Highlights

• Stryker tops list of West Michigan’s largest publicly traded companies (May 28, 2025):

Healthcare giant Stryker reported a 10.2% revenue increase, outpacing many peers. While this news is not directly related to Public Service, it highlights the mixed performance in the broader market, which could influence investor sentiment and capital allocation toward more robust performers.

SEC Form S-3ASR filed by SouthState Corporation (May 21, 2025):
This regulatory filing by SouthState signals potential capital-raising activity. While SouthState is a different entity, SEC filings can sometimes influence investor behavior toward the sector. However, there is no clear indication this affects Public Service directly.

Analyst Views & Fundamentals

Recent analyst ratings for Public Service show a simple average rating of 3.67 and a historical performance-weighted rating of 5.05. While the average rating suggests a cautious stance, the weighted score implies optimism from institutions with stronger historical performance.

However, ratings are not in agreement. The recent 20-day period saw two neutral and one strong buy ratings, highlighting a lack of consensus. This divergence contrasts with the stock’s recent price drop of -4.79%, indicating market expectations are not aligning with current price movement.

Key Fundamental Factors and Model Scores

• ROA (Return on Assets): 1.04% – Internal diagnostic score: 6.54
  This suggests moderate profitability relative to its asset base.
• Net Profit / Total Profit: 87.42% – Internal diagnostic score: 6.54
  Indicates that the company is retaining a high portion of its overall profits.
• Basic Earnings per Share YoY Growth: 21.13% – Internal diagnostic score: 6.54
  Suggests strong earnings growth from core operations.

Money-Flow Trends

Public Service has seen negative trends across all investor categories. While large and extra-large investors are moving in the same negative direction, retail (small) investors are also showing a negative trend. Specifically:

• Small investor inflow ratio: 49.38%
• Medium investor inflow ratio: 49.32%
• Large investor inflow ratio: 47.97%
• Extra-large investor inflow ratio: 48.83%

The fund-flow score is 7.76 (internal diagnostic score), with a score level of “good,” suggesting that while large money flows are negative, the situation is not alarming. However, it underscores that investors are currently net sellers.

Key Technical Signals

Technically, Public Service is in a weak position. The technical score is 2.88 (internal diagnostic score), with the key indicator being the Williams %R (WR) Oversold.

Indicator Details

• WR Oversold – Internal diagnostic score: 2.88
  This indicator typically suggests a potential reversal point in an oversold market condition. However, with five consecutive days of this signal, it appears the market is not responding as expected.

Recent Indicators by Date

• August 18, 2025 – WR Oversold
• August 19, 2025 – WR Oversold
• August 22, 2025 – WR Oversold
• August 25, 2025 – WR Oversold
• August 27, 2025 – WR Oversold

Despite repeated oversold signals, the price continues to decline, indicating lack of buying interest or weak momentum.

Key Insights

• Technical indicators show the market is in a weak state, with risks of further decline.
• Bearish signals are dominant, with 1 bearish vs. 0 bullish indicators.
• Recent signals are scarce and calm, which can also point to a lack of market conviction.

Conclusion

Consider waiting for a pull-back or clearer momentum before engaging with Public Service (PEG). The stock is currently underperforming technically with a very low internal diagnostic score of 2.88, and while some fundamentals like ROA and earnings growth are decent, the bearish price trend and weak investor flows suggest caution. Investors may want to watch for any upcoming catalysts or earnings reports that could signal a potential turnaround in sentiment.