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

PG&E Corporation PCG 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 HistoryThe 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 HistoryPCG 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 PlanThe 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 EquityReturn 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 SolvencyPCG’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 PerformanceOver the past three months, PCG’s shares have risen 4.4%, but lagged behind the industry’s growth of 7.7%. Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are Dominion Energy, Inc. D, Edison International EIX and CenterPoint Energy, Inc. CNP, 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%. Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Edison International (EIX): Free Stock Analysis Report Pacific Gas & Electric Co. (PCG): Free Stock Analysis Report CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report Dominion Energy Inc. (D): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks