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Here's Why You Should Add PCG Stock to Your Portfolio Right Now
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Key Takeaways
PCG expects steady long-term earnings growth of 15.9%, supported by consistent performance trends.
PG&E is investing heavily in grid upgrades, with $12.4B planned for 2026 and $73B through 2030.
PCG is expanding battery storage, managing 4.9 GW in contracts and operating 183 MW to boost grid reliability.
PG&E Corp. (PCG - Free Report) focuses on consistent investments in infrastructure upgrades to better serve its customers. The company is also steadily expanding its renewable generation assets. Given its strong growth prospects, PCG makes for a solid investment option in the Zacks Utility Electric Power industry.
Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
PCG’s Growth Outlook & Surprise History
The Zacks Consensus Estimate for 2026 earnings per share is pegged at $1.64, which indicates year-over-year growth of 9.3%.
The consensus estimate for 2026 sales is $26.35 billion, which indicates year-over-year growth of 5.7%.
PCG’s long-term (three to five years) earnings growth rate is 15.9%.
The company delivered an average earnings surprise of 0.47% in the last four quarters.
PCG’s Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, PCG’s ROE is 11.28% compared with its industry’s average of 10.90%. This indicates that the company has been utilizing its funds more constructively than its peers in the industry.
PG&E continues to make considerable investments in gas-related projects and electric system safety and reliability to further strengthen its grid and thereby boost customer satisfaction. The company made capital expenditures worth $11.79 billion in 2025. PG&E aims to invest $12.4 billion in 2026. For the 2026-2030 period, the company expects to invest $73 billion. Such solid capital expenditures on infrastructure bode well for the long haul.
To promote green energy, PG&E also invests in battery energy storage. The company managed more than 4.9 GW of battery energy storage contracts in 2025, which will be deployed over the next several years. It also operated 183 MW of utility-owned battery storage, thereby strengthening California’s grid efficiency and reliability, as of Dec. 31, 2025. Such efforts should enable the company to expand substantially in the rapidly enhancing battery storage business.
PCG’s Solvency
The time-to-interest earned ratio at the end of the fourth quarter of 2025 was 1.8. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
PCG Stock Price Performance
In the past three months, PCG shares have risen 9.1% compared with the industry’s growth of 3.3%.
NiSource’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for NI’s 2026 EPS implies an improvement of 7.9% year over year.
The consensus estimate for DUK’s 2026 EPS implies an improvement of 6.3% year over year. The company delivered an average earnings surprise of 4.77% in the last four quarters.
ETR’s long-term earnings growth rate is 11.5%. The Zacks Consensus Estimate for ETR’s 2026 EPS implies an improvement of 12.8% year over year.
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Here's Why You Should Add PCG Stock to Your Portfolio Right Now
Key Takeaways
PG&E Corp. (PCG - Free Report) focuses on consistent investments in infrastructure upgrades to better serve its customers. The company is also steadily expanding its renewable generation assets. Given its strong growth prospects, PCG makes for a solid investment option in the Zacks Utility Electric Power industry.
Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
PCG’s Growth Outlook & Surprise History
The Zacks Consensus Estimate for 2026 earnings per share is pegged at $1.64, which indicates year-over-year growth of 9.3%.
The consensus estimate for 2026 sales is $26.35 billion, which indicates year-over-year growth of 5.7%.
PCG’s long-term (three to five years) earnings growth rate is 15.9%.
The company delivered an average earnings surprise of 0.47% in the last four quarters.
PCG’s Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, PCG’s ROE is 11.28% compared with its industry’s average of 10.90%. This indicates that the company has been utilizing its funds more constructively than its peers in the industry.
PCG’s Infrastructure Investments & Renewable Focus
PG&E continues to make considerable investments in gas-related projects and electric system safety and reliability to further strengthen its grid and thereby boost customer satisfaction. The company made capital expenditures worth $11.79 billion in 2025. PG&E aims to invest $12.4 billion in 2026. For the 2026-2030 period, the company expects to invest $73 billion. Such solid capital expenditures on infrastructure bode well for the long haul.
To promote green energy, PG&E also invests in battery energy storage. The company managed more than 4.9 GW of battery energy storage contracts in 2025, which will be deployed over the next several years. It also operated 183 MW of utility-owned battery storage, thereby strengthening California’s grid efficiency and reliability, as of Dec. 31, 2025. Such efforts should enable the company to expand substantially in the rapidly enhancing battery storage business.
PCG’s Solvency
The time-to-interest earned ratio at the end of the fourth quarter of 2025 was 1.8. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
PCG Stock Price Performance
In the past three months, PCG shares have risen 9.1% compared with the industry’s growth of 3.3%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the same industry are NiSource (NI - Free Report) , Duke Energy (DUK - Free Report) and Entergy Corporation (ETR - Free Report) , each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NiSource’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for NI’s 2026 EPS implies an improvement of 7.9% year over year.
The consensus estimate for DUK’s 2026 EPS implies an improvement of 6.3% year over year. The company delivered an average earnings surprise of 4.77% in the last four quarters.
ETR’s long-term earnings growth rate is 11.5%. The Zacks Consensus Estimate for ETR’s 2026 EPS implies an improvement of 12.8% year over year.