PG&E Corporation (PCG), based in Oakland, California, engages in the sale and delivery of electricity and natural gas to customers in northern and central California, the United States through its subsidiary, Pacific Gas and Electric Company. With a market cap of $44.8 billion, the company generates electricity using nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic sources.
Companies worth $10 billion or more are generally described as "large-cap stocks," PG&E fits this bill perfectly. As a leading energy supplier to residential, commercial, industrial, and agricultural customers, the company benefits from a large portfolio of interconnected transmission lines, electric transmission substations, distribution lines, switching, and distribution substations.
However, the leading energy supplier has hit rough waters, falling 22.7% from its 52-week high of $21.72, recorded on Nov. 29. PCG stock has dipped 15% over the past three months, compared to the broader S&P 500 Index ($SPX), which declined 6.8% during the same period.
PCG has declined 15.1% over the past six months but surged 3.8% over the past 52 weeks. In contrast, $SPX has surged marginally over the past six months and 9.5% over the past 52 weeks, outperforming the stock.
PCG has been trading below its 200-day moving average since early January but has surged above its 50-day moving average since the last trading session.
PCG declined 1.1% following its Q4 earnings release on Feb. 13. Thanks to lower operating expenses and higher electricity rates, its EPS reached $0.31, successfully meeting the Wall Street EPS estimates. Additionally, PG&E added nearly 14,000 new customers in 2024, the highest in decades, and experienced a 10.5% growth in its rate base.
The company also raised its 2025 core EPS guidance to a range of $1.48 to $1.52, slightly above previous estimates.
Its rival, Entergy Corporation (ETR), is in the lead, with its shares surging 33.8% over the past six months and 65.9% over the past 52 weeks.
Analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 17 analysts in coverage. Its mean price target of $21.06 represents an upside of 25.5% from the current market prices.
On the date of publication, Kritika Sarmah 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.
