Price Forecast:

Bullish Case: As PEG stabilizes with strong cost management and infrastructure investments, a favorable regulatory environment boosts investor confidence, potentially driving the stock price upward. Overall economic recovery signals growth in utility demands, enhancing PEG's revenue outlook.

Bearish Case: Environmental concerns and regulatory pressures may weigh heavily on PEG, leading to potential equity dilution and stagnant earnings growth. Short-term market volatility compounded by higher operational costs poses significant risks to PEG's valuation.

Potential Outcomes:

• EPS growth of 6% in 2025: 50% chance.
• Regulatory setbacks lead to a decline: 30% chance.
• Infrastructure costs increase, impacting margins: 20% chance.

Trading Oracle: Implement a bullish put credit spread strategy by selling $85 puts and buying $80 puts expiring in 42 days. This leverages low implied volatility and captures premium decay with high profit probability. Monitor regulatory news and adjust positions as necessary to capitalize on PEG’s anticipated growth amid market reactions.

December 20, 2024