10 Best Renewable Energy Stocks To Buy According to Hedge Funds

5. PG&E (NYSE:PCG)  

Number of Hedge Fund Holders: 46  

Market Capitalization as of September 2: $51.51 Billion  

PG&E (NYSE:PCG) is a leading energy company in Northern and Central California’s utility market and serves more than 16 million people through its subsidiary, Pacific Gas & Electric Company. In 2023, PG&E (NYSE:PCG) had 100% clean electricity which came from a mix of sources: 53% from nuclear power, 34% from renewable resources like solar and wind, and 13% from large hydroelectric power. PG&E (NYSE:PCG) has also invested heavily in battery storage systems and has added over 2,100 megawatts of battery storage.

California leads the United States in data center capacity. Additionally, California has the highest per capita electric vehicle ownership in the U.S. with over 1.1 million EVs and more than 15,000 charging stations. PG&E (NYSE:PCG) has a strong position in California, especially in Silicon Valley. The Bay Area has a top-notch fiber network and a grid mostly powered by renewable energy, making PG&E (NYSE:PCG) an important player for data centers in the region. PG&E’s (NYSE:PCG) CEO, Patti Pope, mentioned in a Bloomberg interview that the company’s grid is currently underutilized, operating at 45% capacity. However, with advancements in modern computing, grid utilization is expected to increase to 80% by 2040, with power demand potentially doubling during this period.

Despite facing challenges such as higher electricity costs, PG&E (NYSE:PCG) is well-positioned to benefit from increased demand for energy, particularly from the EV and AI sectors. PG&E’s (NYSE:PCG) stock is trading at a forward PE of 14.52, a 15.75% discount to its sector, and analysts expect the company’s earnings to grow by almost 10% this year. As of September 2, PG&E (NYSE:PCG) has a market cap of $51.51 billion. Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $21.75, which represents an 8.6% upside potential from its current level. As of the second quarter, the stock is held by 46 hedge funds with stakes worth $2.00 billion. Third Point is the largest shareholder in the company with stocks worth $938.47 million as of June 30.