Back to top

Image: Bigstock

Here's Why PCG Stock Deserves a Spot in Your Portfolio Right Now

Read MoreHide Full Article

Key Takeaways

  • PCG's 2025 revenue estimate is pinned at $26.06 billion, implying 6.72% year-over-year growth.
  • The company plans $73 billion investment during 2026-2030 to modernize gas and electric systems.
  • PCG aims for 90% renewable and zero-carbon retail energy sales by 2035 through storage expansion.

PG&E Corporation (PCG - Free Report) continues to benefit from its systematic investments, which are focused on infrastructure improvements. This helps the company to enhance service reliability. PCG also gains from its clean energy initiatives.

Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick in the Zacks Utility-Electric Power industry at present.

PCG’s Growth Outlook & Surprise History

The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) has increased 2.6% to 39 cents in the past 60 days.

The Zacks Consensus Estimate for 2025 revenues is pegged at $26.06 billion, suggesting a year-over-year improvement of 6.72%.

PCG’s long-term (three to five years) earnings growth rate is 15.89%. It delivered an average earnings surprise of 0.5% in the last four quarters.

PCG’s Dividend History

PCG has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 2.5 cents per share, resulting in an annualized dividend of 10 cents. PCG’s current dividend yield is 0.64%, lower than the Zacks S&P 500 composite's average of 1.10%.

PCG’s Capital Investment and Clean Energy Plan

The company plans to invest $12.9 billion in 2025 and expects to invest an additional $73 billion over the 2026-2030 period, targeting 10% earnings growth for 2025 and a long-term annual growth rate of at least 9% during 2026-2030, positioning it for sustained future performance.

To promote green energy, PG&E also invests in battery energy storage. The company has already achieved its storage goal of making 580 megawatts of qualifying storage capacity operational by the end of 2024, enabling it to meet its target of delivering 90% of retail energy sales to customers from renewable and zero-carbon energy sources by 2035.

PCG’s Return on Equity

Return on Equity (ROE) indicates how efficiently a company is utilizing shareholders’ funds to generate returns. At present, PCG’s ROE is 11.10%, higher than the industry average of 9.64%.

PCG’s Solvency

PCG’s times interest earned ratio (TIE) at the end of the third quarter of 2025 was 1.8. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, showing the extent to which its operating earnings are sufficient to cover interest payments.

PCG’s Share Price Performance

Over the past three months, PCG’s shares have risen 4.4%, but lagged behind the industry’s growth of 7.7%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

A few other top-ranked stocks from the same industry are Dominion Energy, Inc. (D - Free Report) , Edison International (EIX - Free Report) and CenterPoint Energy, Inc. (CNP - Free Report) , each carrying a Zacks Rank #2 at present. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

D’s long-term earnings growth rate is 10.26%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.40, which suggests year-over-year growth of 22.74%. 

EIX’s long-term earnings growth rate is 10.93%. The Zacks Consensus Estimate for 2025 EPS is pegged at $6.10, which suggests year-over-year growth of 23.73%. 

CNP’s long-term earnings growth rate is 8.86%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.77, which suggests year-over-year growth of 9.26%.

 

Published in