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Here's Why You Should Add PG&E (PCG) Stock to Your Portfolio

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PG&E Corporation (PCG - Free Report) flaunts a stellar portfolio of regulated utility assets providing a stable earnings base and huge potential for long-term growth. It maintains stable liquidity along with a strong cash-generating capacity through its operating activities. This Zacks Rank #2 (Buy) utility stock remains a promising bet, driven by its focus on investments in infrastructure projects and steady customer growth.

Bullish Growth Projections: The Zacks Consensus Estimate for 2020 earnings per share is pegged at $4.07 on $17.4 billion revenues. While the top line implies a 4.68% increase, the bottom line suggests a 1.50% improvement from the year-ago figures.

PG&E has an expected long-term earnings (three to five years) per share growth rate of 2.51%.

Robust Price Performance: Shares of PG&E have soared 69.9% in the past 12 months, outperforming the industry’s rally of 23.5%.


Positive Earnings Estimate Revision & Surprise History: The Zacks Consensus Estimate for 2020 earnings has been revised 2.3% upward over the past 60 days.

PG&E’s trailing four-quarter positive earnings surprise is 17.53% on average.

Hefty Investment Plans

PG&E Corp consistently makes substantial investments in gas-related projects, as well as electric system safety and reliability. It expects to spend approximately $5.7-$7 billion annually from 2020 through 2023. Moreover, it projects more than $1 billion for grid investments through 2020 to increase remote control and sensor technology of the grid.

Other Stocks to Consider

Other top-ranked stocks in the utility sector include Entergy Corporation (ETR - Free Report) , NorthWestern Corporation (NWE - Free Report) , and Atmos Energy Corporation (ATO - Free Report) , all holding a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Entergy Corporation, NorthWestern Corporation and Atmos Energy Corporation delivered a four-quarter average positive earnings surprise of 4.79%, 10.49% and 3.18%, respectively.

Long-term earnings per share growth rate for Entergy Corporation, NorthWestern Corporation and Atmos Energy Corporation is projected at 7%, 3.53% and 7.15% each.

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