5 Best Utility Stocks To Buy Now

2. PG&E Corporation (NYSE:PCG)

Market cap as of March 28: $36.08 Billion
Number of Hedge Fund Holders: 52

PG&E Corp. (NYSE:PCG) is a major US utility holding company whose primary subsidiary is Pacific Gas and Electric. The regulated utility operates in Central and Northern California, serving 5.3 million electricity and 4.6 million gas customers in 47 of the state’s 58 counties. After a bankruptcy court-supervised period from Jan. 2019 to June 2020, PG&E Corp. (NYSE:PCG) resumed operations.

PG&E Corp. (NYSE:PCG)’s 2022 electricity delivery comprised 40% from eligible-renewable resources, 49% from nuclear, and 7% from large hydroelectric power. The company supports California’s clean energy policies, renewable goals, and climate change efforts.

PG&E Corp. (NYSE:PCG) had a profitable 2022, with $1.8 billion in income available for common shareholders, or $0.84 per diluted share, compared to losses in 2021. The company updated its 2023 EPS guidance, with GAAP earnings expected to be between $0.98 and $1.13 per share. It also reaffirmed non-GAAP core earnings guidance of $1.19 to $1.23 per share.

In its Q4 2022 investor letter, ClearBridge Investments stated the following about PG&E Corporation (NYSE:PCG):

“Turning to the U.S. and Canada, U.S. electric utility PG&E Corporation (NYSE:PCG) and U.S. water company American Water Works (AWK) also made strong contributions. PG&E is a regulated utility operating in central and northern California that serves 5.3 million electricity customers and 4.4 million gas customers in 47 of the state’s 58 counties. PG&E outperformed given several positive catalysts: it was included in the S&P 500 Index, the Fire Victim’s Trust sold some of its stake in the company, easing a market overhang, and the company displayed evidence of its operational improvements, with no major fires seen so far this fire season.”