Top 5 Utility Stocks to Buy Now

2. PG&E Corporation (NYSE:PCG)

Stock Upside Potential: 28.24%

Number of Hedge Fund Holders: 80

PG&E Corporation (NYSE:PCG) is one of the top utility stocks to buy now. On March 23, Jefferies downgraded PG&E Corporation (NYSE:PCG) to a Hold from a Buy and cut the price target to $19 from $20.

According to the research firm, they are moving to the sidelines, concerned about reduced confidence in the prospects for constructive wildfire liability reform for utilities. The research firm analyst Julian Dumoulin-Smith believes utilities and insurers are not aligned with stakeholder conversations. The lack of sufficient political support to push for structural change also prompted the downgrade.

The remarks follow the stock’s impressive 20% gain at the back of California initiative SB254, the Natural Catastrophe Resiliency Study, which seeks to create long-term reforms in insurance availability, wildfire mitigation, and catastrophe refinancing.

According to Jefferies, the stock’s impressive run might have priced in the prospects of positive regulatory reform. The stock also rallied on expectations of a supportive outcome from the SB254 Phase II initiative.

PG&E Corporation (NYSE:PCG) is an Oakland-based holding company that owns Pacific Gas and Electric Company, a major utility providing electricity and natural gas to over 16 million people across Northern and Central California. It serves 5.6 million electric and 4.6 million natural gas customers and operates energy transmission, distribution, and storage systems.