12 Most Undervalued Stocks to Invest in for Under $20

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1) PG&E Corporation (NYSE:PCG)

Forward P/E as of January 17: 11.4x

Share Price as of January 17: $17.01

Number of Hedge Fund Holders: 49

PG&E Corporation (NYSE:PCG) is mainly involved in the generation, transmission, and distribution of electricity and natural gas. BMO Capital Markets initiated coverage on the company’s shares, assigning an “Outperform” rating and a price target of $21.00. The firm sees the company’s stock as a core investment in the regulated utility sector, which offers a unique deep value opportunity together with healthy visible growth prospects.

The White House has finalized a $15 billion loan guarantee to PG&E Corporation (NYSE:PCG). This loan has been designed to help fund a portfolio of projects for the company to address the forecasted power demand growth and update its grid, as per Bloomberg. The company’s capex plans remain aligned with overall industry trends, consisting of the integration of renewable energy sources and the modernization of grid infrastructure. These initiatives are expected to support PG&E Corporation (NYSE:PCG)’s financial growth and will contribute to its environmental, social, and governance (ESG) profile.

The company’s growth strategy remains heavily inclined towards capital investments targeted at improving grid resiliency and accommodating load growth in transmission and distribution systems. Such investments can fuel PG&E Corporation (NYSE:PCG)’s rate base growth and aid its long-term earnings trajectory. Mizuho upped its price objective on the company’s shares from $24.00 to $26.00, giving an “Outperform” rating on 27th November.

While we acknowledge the potential of PCG as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than PCG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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