10 Stocks To Trade Without Tariffs And Interest Rate Fears

7. PG&E Corporation (NYSE:PCG)

PG&E Corporation is an electric and Pacific gas company that sells and delivers natural gas and electricity. The company generates electricity through hydroelectric, fossil fuel-fired, photovoltaic, fuel cell, and nuclear sources. The company’s stock has taken a hit from the LA wildfires earlier in the year. Still down about 20% since the fires started. Slowly but surely, the utility company is inching up to its prior valuation.

There’s a lot going wrong for the company at the moment. UBS downgraded the stock this week as the California wildfire insurance fund is expected to deplete. The carnage caused by the Eaton fire also prompted Morgan Stanley to downgrade the stock last month. Both firms believe that the absence of a short-term catalyst means the stock could re-rate in the aftermath of the wildfires.

Despite all that, there is a growth story here that is worth betting on due to the shrinking valuation. The company has a 5.5GW data center in the pipeline and the power demand is only going to rise further as the US focuses on improving its AI infrastructure.

PCG has $63 billion worth of funding secured for capex till 2028, so investors have some visibility into the next 3 years of earnings without the fear of shareholding dilution. The earnings growth of 9% through this period drives the company’s bullish thesis. As soon as the wildfire dust settles, the market will start pricing in this growth and investors will be rewarded.