10 Worst Performing Utilities Stocks to Buy According to Analysts

6) PG&E Corporation (NYSE:PCG)

% Decline Over Past Year: ~5.6%

Average Upside Potential: ~40.2%

Number of Hedge Fund Holders: 74

PG&E Corporation (NYSE:PCG), through its subsidiary, Pacific Gas and Electric Company, is engaged in the sale and delivery of electricity and natural gas to customers in northern and central California, the United States. BMO Capital upped the stock’s price target to $23 from $21, keeping an “Outperform” rating after its Q4 2024 results. The analyst believes that PG&E Corporation (NYSE:PCG) had a strong year operationally with EPS consistent with consensus estimates.

Furthermore, as per the analyst, the company’s stock has been trading at a deep discount despite top-tier EPS and rate base growth, with numerous potential catalysts to realize multiple expansions, like an upgrade to investment grade and a growing dividend yield. PG&E Corporation (NYSE:PCG)’s growth strategy is aided by strong capital investment opportunities. It plans to invest in grid resiliency, the expansion of transmission and distribution infrastructure, and wildfire mitigation.

Over the long term, with California leading the AI boom, electricity demand is projected to increase, supporting the growth prospects of public utilities, including PG&E Corporation (NYSE:PCG). The company has increased the guidance range for projected 2025 non-GAAP core earnings from $1.47 – $1.51 per share to $1.48 – $1.52 per share. Overall, PG&E Corporation (NYSE:PCG) is expected to continue to benefit from California’s energy policies, regulatory-backed rate increases, increased electrification and infrastructure upgrades.