Is PG&E Corporation Stock Underperforming the Nasdaq?

Oakland, California-based PG&E Corporation (PCG) engages in the sale and delivery of electricity and natural gas to customers in northern and central California through its subsidiary, Pacific Gas and Electric Company. Valued at a market cap of $38.3 billion, the company generates electricity using nuclear, hydroelectric, fossil fuel-fired, fuel cells, and photovoltaic sources. 

Companies with a market cap of $10 billion or more are typically referred to as “large-cap stocks.” PCG fits perfectly into that category, with its market cap exceeding this threshold and reflecting its substantial size and influence in the regulated electric utilities industry.    

PCG stock reached its 52-week high of $19.16 on March 2 and has slipped 25.4% from that peak. The stock has fallen 15% over the past three months, underperforming the Nasdaq Composite ($NASX), which fell 1.2% over the same period.  

Over the longer term, the scenario remains the same. PCG is down 6.1% over the past 52 weeks, lagging behind NASX's 22.1% return over the same period.     

PCG has been trading below its 200-day and 50-day moving averages since the end of August, indicating bearish momentum. 

On Aug. 28, PCG stock closed down more than 7% following a report from KCRA announcing that California lawmakers rejected Governor Newsom’s plan to prevent insurance companies in California from recouping their losses from investor-owned utilities that cause a catastrophic wildfire. This decision opens up several new loss structures that these utility companies could face on account of wildfires, severely hampering their profitability. 

When stacked against its peer in the regulated electric utilities industry, Public Service Enterprise Group Incorporated (PEG) shares have declined 9.8% over the past 52 weeks, lagging behind PCG’s performance over the same time period.  

Wall Street’s view of PCG stock is somewhat optimistic. Among the 18 analysts covering the stock, the overall consensus rating is “Moderate Buy.” Its mean price target of $19.44 offers a 35.9% upside potential.  

On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.