12 Best Electric Utility Stocks to Buy Now

3. PG&E Corporation (NYSE:PCG)

Number of Hedge Fund Investors: 74

PG&E Corporation (NYSE:PCG) is ranked third in our list of Best Utility Stocks. It is a holding firm whose primary subsidiary is Pacific Gas and Electric, a regulated utility in Central and Northern California that serves 5.3 million electricity customers and 4.6 million gas customers in 47 of the state’s 58 counties. It was supervised by the bankruptcy court from January 2019 until June 2020. In an earlier post-bankruptcy restructure, it sold its unregulated assets in 2004.

Since coming out of bankruptcy in 2019, PG&E Corporation (NYSE:PCG)’s financial status has improved dramatically. By upgrading its infrastructure, burying electricity lines, and installing cutting-edge weather monitoring systems, the company has significantly reduced the risk of wildfires. Additional defense against excessive financial liability is offered by California’s changing regulatory framework, which includes the state’s wildfire insurance fund. In 2024, it reported $1.36 in earnings per share, an 11% increase over 2023.

Operationally, PG&E Corporation (NYSE:PCG) keeps up steady earnings growth, bolstered by a robust regulatory framework and a substantial rate base expansion. The business’s long-term capital investment strategy is still in place, and its equity requirements are completely covered until 2028. In addition, its forward P/E ratio is still appealing when compared to rivals and its historical average, suggesting upside potential if market concerns fade.

Given that PG&E Corporation (NYSE:PCG) has no direct liability for the Palisade and Eaton fires, the company’s stock drop seems unjustified. Shares may rise sharply as investor confidence stabilizes and worries about wildfires subside, making a bullish case for sustained growth.