PG&E Corporation (PCG), headquartered in Oakland, California, is a prominent leader in the energy sector, delivering reliable and sustainable energy solutions to millions of customers across Northern and Central California. With a market cap of $53.2 billion, PG&E is at the forefront of advancing renewable energy initiatives and innovative technologies, empowering communities and businesses to meet their energy needs while prioritizing environmental stewardship and safety.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” PG&E Corporation is firmly within this category. This designation reflects its significant size, influence, and leadership in the energy sector. PG&E delivers a diverse portfolio of energy solutions, demonstrating its commitment to safety, reliability, and innovation in meeting the region’s energy needs.
PG&E Corporation shares are trading 6.4% below their 52-week high of $21.72, which they hit on Nov. 29. The stock has gained 1.3% over the past three months, underperforming the Vanguard Utilities Index Fund ETF (VPU), which has gained 4.9% over the same time frame.
Over the longer term, PCG has delivered a 12.8% gain on a YTD basis, lagging behind VPU’s 25.7% return. Similarly, over the past 52 weeks, PCG’s 17.9% increase has trailed the VPU’s 25.2% rise.
PCG is trading slightly below its 50-day moving average, confirming a bearish short-term trend. However, it has remained above its 200-day moving average since mid-April, indicating a sustained bullish long-term outlook.
On Dec. 2, PG&E Corporation closed down over 4% after announcing a $1.2 billion offering of convertible preferred stock shares.
PG&E Corporation’s stock saw a modest uptick following its Q3 earnings release on Nov. 7. The company reported adjusted EPS of $0.37, reflecting a robust 54.2% year-over-year growth and exceeding consensus estimates of $0.32. However, revenue growth remained modest at $5.94 billion, falling short of the anticipated $6.67 billion. The company updated its 2024 non-GAAP core EPS guidance to $1.34 to $1.37 per share, signaling confidence in its ongoing operational performance.
Edison International (EIX), PG&E’s competitor, has surpassed PCG, achieving a 17.4% gain on a YTD basis and 25% over the past year.
Analysts remain optimistic about its prospects despite the stock underperforming the broader sector. PCG has a consensus rating of “Strong Buy” from the 16 analysts covering the stock and has a mean price target of $23.80, suggesting a potential upside of 17.1% from its current price.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart