Player Avatar kurtdabear (32.16) Submitted: 11/15/2012 10:35:12 AM : Outperform Start Price: $26.93 PEG Score: +1.25

PEG has been artificially beaten down recently by the events surrounding Superstorm Sandy, but longer term, the company has a lot of initiatives in place to help it grow earnings. Its Sandy losses are insured and short-term and will soon be forgotten. Meanwhile its growing transmission and generation segments should add nicely to future earnings. In addition, starting next year, it takes over management of LIPA's distribution system, which should help LIPA customers and PEG shareholders. PEG also does not hesitate to raise its dividends as earnings allow. One caveat: If the Feds lose control of interest rates or change their low-rate policy, be ready to bail out because that's always bad for utilities.

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