PG&E Corporation, based in Oakland, California, is a significant player in the utilities sector, holding a market capitalization of $35.4 billion. The company is responsible for the sale and delivery of electricity and natural gas across Northern and Central California, utilizing a diverse range of energy sources, including nuclear, hydroelectric, fossil fuels, and solar power.
As a “large-cap stock,” PG&E is well-established with substantial influence within the market. However, its stock performance has faced challenges, declining 25.3% from a 52-week high of $21.20 reached on December 3, 2024. Although the stock witnessed a slight increase of 3.7% over the past three months, this performance lags behind the Utilities Select Sector SPDR Fund (XLU), which has risen by 5% in the same period.
Over the longer term, PG&E’s performance has been disappointing, with stock prices down 21.5% year-to-date and 26.8% over the past year. This decline starkly contrasts with the XLU’s gains of 16.9% in 2025 and a 6.7% increase over the past year. Since January, PG&E has mostly traded below its 200-day moving average, indicating a bearish trend, but it has remained above its 50-day moving average since August, suggesting some recent improvement.
Following the disclosure of its mixed third-quarter results on October 23, PG&E’s stock fell by 1.7%. While the company reported a 5.2% increase in revenue year-over-year, totaling $6.3 billion, it nonetheless fell short of analysts’ expectations by 4.3%. On a positive note, PG&E’s adjusted earnings per share (EPS) rose sharply by 35.1% year-over-year to $0.50, surpassing consensus estimates by 13.6%.
In comparison to its peers, PG&E has lagged behind Sempra Energy, which has seen gains of 4.3% year-to-date and a 2.3% decrease over the past year. Despite these setbacks, analysts maintain a bullish outlook on PG&E. Among the 17 analysts covering the stock, the consensus rating is a “Strong Buy,” and the average price target of $21.36 suggests a potential upside of 34.8%.
Analysts’ optimism, combined with the resilience shown in certain key performance metrics, presents a hopeful outlook for PG&E as it navigates through its challenges.