7 Cheap Solar Stocks To Buy According To Hedge Funds

2.  Pacific Gas & Electric (NYSE:PCG)

Number of Hedge Fund Investors: 46

Forward P/E Ratio as of September 22: 14.78

Pacific Gas & Electric (NYSE:PCG) is a major energy provider in Northern and Central California, serving 16 million people. In 2023, the company achieved 100% clean electricity with a mix of sources, including nuclear power (53%), renewable resources (34%), and hydroelectric power (13%). Additionally, it has invested heavily in battery storage, adding over 2,100 megawatts to its capacity.

Pacific Gas & Electric’s (NYSE:PCG) solar business is the largest component of its renewable energy mix. The company has over 6,000 MW of renewable energy capacity through more than 260 power purchase agreements and owns 430 MW of eligible renewable generation, including 13 solar generation plants that generate up to 153 MW. Additionally, the company invests heavily in battery energy storage systems, with over 3.5 GW under contract, to enhance grid reliability and integrate more renewables.

By harnessing the power of solar energy and leveraging battery storage, Pacific Gas & Electric (NYSE:PCG) is well positioned to capture electricity demand from California’s data centers and electric vehicles, with over 1.1 million EVs and 15,000 charging stations, particularly in Silicon Valley, where it operates a largely renewable-powered grid and advanced fiber network. Pacific Gas & Electric’s (NYSE:PCG) grid is expected to see increased utilization, rising from 45% to 80% by 2040.

Pacific Gas & Electric (NYSE:PCG) is well-positioned to capitalize on the increasing demand for energy, driven in part by the growing electric vehicle (EV) and artificial intelligence (AI) industries. The company’s stock trades at a forward price-to-earnings ratio of 14.78, representing an 18.47% discount compared to the selector median of 18.13. Analysts forecast the company to increase its earnings by 10% increase this year.

As of the second quarter, 46 hedge funds hold a combined stake in the company valued at $2.00 billion, with Third Point as the largest shareholder, holding stocks worth $938.47 million as of June 30.