5 Best Electric Utility Stocks To Buy Now

2. PG&E Corporation (NYSE:PCG)

Number of Hedge Fund Holders: 52

PG&E Corporation (NYSE:PCG) provides electricity and natural gas to customers in the northern and central regions of California. The company generates electricity using various sources, such as nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic. PG&E Corporation (NYSE:PCG) is one of the best electric utility stocks to invest in. The company provided an update on its earnings per share (EPS) guidance for 2023 on February 23, stating that GAAP earnings are expected to fall within the range of $0.98 to $1.13, while non-GAAP core earnings are projected to lie within the range of $1.19 to $1.23 per share. This is in comparison to the market consensus of $1.22 per share.

On April 3, Ladenburg analyst Paul Fremont initiated coverage of PG&E Corporation (NYSE:PCG) with a Buy rating and a $20.50 price target. Fremont believes that the California wildfire fund worth $20 billion will cover the near-term fire exposure and after the completion of the company’s plan to put 10,000 miles of distribution lines underground, it will “effectively eliminate its exposure to wildfires.” The analyst also believes that the current level of rate base investment will support the firm’s forecast of 10% EPS growth through 2025.

According to Insider Monkey’s fourth quarter database, 52 hedge funds were long PG&E Corporation (NYSE:PCG), compared to 46 funds in the earlier quarter. Dan Loeb’s Third Point is the largest stakeholder of the company, with 59 million shares worth $960.5 million. 

ClearBridge Global Infrastructure Value Strategy made the following comment about PG&E Corporation (NYSE:PCG) in its Q4 2022 investor letter:

“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.”