5 Best Stocks For Beginners With Little Money

4. PG&E Corporation (NYSE:PCG)

Number of Hedge Fund Holders: 51

Share Price as of October 26: $15.22

PG&E Corporation (NYSE:PCG) engages in the sale and delivery of electricity and natural gas to customers in northern and central California. It generates electricity using nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic sources. On October 7, RBC Capital analyst Shelby Tucker raised the price target on PG&E Corporation (NYSE:PCG) to $19 from $16 and kept an Outperform rating on the shares. The analyst is “encouraged” by the firm’s wildfire mitigation efforts and its inclusion in the S&P 500. PG&E Corporation (NYSE:PCG) is one of the best beginner stocks to invest in. 

Among the hedge funds tracked by Insider Monkey, PG&E Corporation (NYSE:PCG) was part of 51 hedge fund portfolios at the end of the second quarter of 2022, with collective stakes worth $2.7 billion, compared to 51 funds in the last quarter worth $3.2 billion. Dan Loeb’s Third Point is the biggest stakeholder of the company, with 65.4 million shares valued at $652.7 million. 

Here is what Third Point specifically said about PG&E Corporation (NYSE:PCG) in its Q3 2022 investor letter:

“Since we wrote about PG&E Corporation (NYSE:PCG) in May, the Company has continued to close the valuation gap with its regulated peer group. Over the third quarter PCG’s stock rose 25% versus a 6% decline in the XLU (a proxy for the S&P 500 Utilities Sector). Outperformance was driven by the S&P 500 indexing announcement and continued execution by Patti Poppe, the recently hired CEO, and her team. Management has focused its efforts on mitigating physical and financial risk by building in layers of protection against catastrophic wildfires, financial uncertainty, and rate-payer volatility. Importantly for a utility company, Ms. Poppe has a plan to make much needed investments in safety, reliability, and service quality via capital investment while simultaneously reducing operating expenses.

Despite the recent move, we are optimistic about the Company’s prospects with industry leading 10% EPS growth and likely dividend reinstatement in 2023. PG&E, which currently trades at a 6x discount to peers on ’23 earnings, should continue to re-rate as investors become more familiar with the enhanced regulatory framework under AB1054 and build further confidence in management’s execution capabilities.”