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.
