PG&E Corporation (PCG), headquartered in Oakland, California, sells and delivers electricity and natural gas to its customers. Valued at $53.09 billion by market cap, PCG is one of the largest utility companies in the U.S. that provides electricity and natural gas distribution, electricity generation, procurement, and transmission, and natural gas procurement, transportation, and storage.
Shares of this leading gas and electricity provider have underperformed the broader market considerably over the past year. PCG has gained 4.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 17.6%. In 2024, PCG stock is up 1.8%, compared to the SPX’s 11.3% rise on a YTD basis.
Narrowing the focus, PCG’s underperformance looks less pronounced compared to the S&P 500 Utilities Sector SPDR (XLU). The exchange-traded fund has gained about 11.3% over the past year. The ETF’s 16.4% returns on a YTD basis outshine the stock’s marginal gains over the same time frame.
On Jul. 25, PCG shares closed down more than 1% after the company reported its Q2 results. Its adjusted EPS of $0.31 surpassed Wall Street expectations of $0.30. The company’s revenue was $5.99 billion, beating Wall Street forecasts of $5.83 billion. PCG reaffirmed its full-year adjusted EPS of between $1.33 and $1.37. It also reaffirmed its 2024 to 2028 financing plan.
For the current fiscal year, ending in December, analysts expect PCG’s EPS to grow 9.8% to $1.35 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 14 analysts covering PCG stock, the consensus rating is a “Strong Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
This configuration is slightly more bullish than three months ago, with eight suggesting a “Strong Buy.”
Recently, Wells Fargo analyst Neil Kalton maintained a “Buy” rating on PCG stock, with a price target of $22, implying a potential upside of 19.3% from current levels.
The mean price target of $21.04 represents a 14.1% premium to PCG’s current price levels. The Street-high price target of $23 suggests an upside potential of 24.7%.
On the date of publication, Neha Panjwani 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.
