Here's Why You Should Add PCG Stock to Your Portfolio Right Now

PG&E Corporation PCG continues to benefit from its clean energy initiatives, a decline in interest rates and its systematic investments, which are focused on infrastructure improvements. This helps the company to enhance service reliability.
 
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

PCG’s Growth Outlook & Surprise History

The Zacks Consensus Estimate for 2025 and 2026 earnings per share is expected to be $1.50 and $1.64, respectively, suggesting year-over-year growth of 10.29% and 9.05%.

The Zacks Consensus Estimate for 2025 and 2026 revenues is pegged at $25.88 billion and 27.54 billion, suggesting year-over-year improvement of 6.0% and 6.39%, respectively.

PCG’s long-term (three to five years) earnings growth rate is 15.89%. The company has missed earnings estimates in two quarters; in one quarter, it was at the breakeven point, and it beat in one quarter, out of the last four reported quarters, resulting in an average positive earnings surprise of 0.47%.

PCG’s Capital Investment and Clean Energy Plan

PCG plans to invest $12.9 billion in 2025 and expects to invest an additional $73 billion over the 2026-2030 time frame. These investments target 10% earnings growth for 2025 and a long-term annual growth rate of at least 9% during 2026-2030, positioning it for sustained future performance.

To promote green energy, PG&E also invests in battery energy storage. The company has already achieved its storage goal of making 580 megawatts of qualifying storage capacity operational by the end of 2024, enabling it to meet its target of delivering 90% of retail energy sales to customers from renewable and zero-carbon energy sources by 2035.

The company will benefit from the decline in interest rate to a range of 3.50-3.75%, which will lower capital servicing expenses and boost margins.

PCG’s Dividend History

PCG’s current dividend yield is 1.26%, lower than the Zacks S&P 500 composite's average of 1.39%. The company announced its fourth-quarter dividend as 5 cents per share, resulting in an annualized dividend of 20 cents.
 
The company is rewarding its shareholders with a continuous increase in dividends. PCG promises a dividend payout ratio of 7% for the year 2025, and this is expected to grow up to 20% by the 2026–2030 time frame.

PCG’s Return on Equity

Return on Equity (ROE) indicates how efficiently a company is utilizing shareholders’ funds to generate returns. At present, PCG’s ROE is 11.10% higher than the industry average of 9.60%, which indicates that the company is utilizing its funds more effectively than its industry peers.

PCG’s Solvency

PCG’s times interest earned ratio (TIE) at the end of the third quarter of 2025 was 1.8. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, showing the extent to which its operating earnings are sufficient to cover interest payments.

PCG’s Share Price Performance

In three months, the stock has gained 5.6% compared with the industry’s 1.4% growth.

Other Stocks to Consider

Some other top-ranked stocks in the Zacks Utilities sector are Ameren Corporation AEE, Spire Inc. SR and Sempra Energy SRE, each holding a Zacks Rank #2.

The long-term (three to five years) earnings growth of Ameren Corporation, Spire Inc. and Sempra Energy is projected at 8.52%, 10.54% and 7.33%, respectively. AEE, SR and SRE delivered surprise earnings of 0.22%, 25.15% and 9.40%, respectively, on average, in the last four quarters.

The dividend yields for Ameren Corporation, Spire Inc. and Sempra Energy are projected at 2.84%, 3.95% and 2.90%, respectively.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research