Is Public Service Enterprise Group Inc. (PEG) a Good Stock to Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cut their positions entirely. At the top of the heap, Israel Englander’s Millennium Management cut the biggest investment of the “upper crust” of funds studied by Insider Monkey, worth close to $30.4 million in call options, and Benjamin A. Smith’s Laurion Capital Management was right behind this move, as the fund cut about $3.6 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to Public Service Enterprise Group Inc. (NYSE:PEG). We will take a look at Zoetis Inc (NYSE:ZTS), Luxottica Group SpA (ADR) (NYSE:LUX), Charter Communications, Inc. (NASDAQ:CHTR), and AutoZone, Inc. (NYSE:AZO). This group of stocks’ market valuations are similar to PEG’s market valuation.

As you can see these stocks had an average of 50 investors with long positions and the average amount invested in these stocks was $5.51 billion. That figure was just $605 million in PEG’s case. Charter Communications, Inc. (NASDAQ:CHTR) is the most popular stock in this table. On the other hand Luxottica Group SpA (ADR) (NYSE:LUX) is the least popular one with only 3 bullish hedge fund positions. Public Service Enterprise Group Inc. (NYSE:PEG) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Charter Communications, Inc. (NASDAQ:CHTR) might be a better candidate to consider taking a long position in.