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

PG&E Corp. PCG focuses on consistent investments in infrastructure upgrades to better serve its customers. The company is also steadily expanding its renewable generation assets. Given its strong growth prospects, PCG makes for a solid investment option in the Zacks Utility Electric Power industry.

Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.

PCG’s Growth Outlook & Surprise History

The Zacks Consensus Estimate for 2026 earnings per share is pegged at $1.64, which indicates year-over-year growth of 9.3%.

The consensus estimate for 2026 sales is $26.35 billion, which indicates year-over-year growth of 5.7%.

PCG’s long-term (three to five years) earnings growth rate is 15.9%.

The company delivered an average earnings surprise of 0.47% in the last four quarters.

PCG’s Return on Equity

Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, PCG’s ROE is 11.28% compared with its industry’s average of 10.90%. This indicates that the company has been utilizing its funds more constructively than its peers in the industry.

PCG’s Infrastructure Investments & Renewable Focus

PG&E continues to make considerable investments in gas-related projects and electric system safety and reliability to further strengthen its grid and thereby boost customer satisfaction. The company made capital expenditures worth $11.79 billion in 2025. PG&E aims to invest $12.4 billion in 2026. For the 2026-2030 period, the company expects to invest $73 billion. Such solid capital expenditures on infrastructure bode well for the long haul.

To promote green energy, PG&E also invests in battery energy storage. The company managed more than 4.9 GW of battery energy storage contracts in 2025, which will be deployed over the next several years. It also operated 183 MW of utility-owned battery storage, thereby strengthening California’s grid efficiency and reliability, as of Dec. 31, 2025. Such efforts should enable the company to expand substantially in the rapidly enhancing battery storage business.

PCG’s Solvency

The time-to-interest earned ratio at the end of the fourth quarter of 2025 was 1.8. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.

PCG Stock Price Performance

In the past three months, PCG shares have risen 9.1% compared with the industry’s growth of 3.3%.

Image Source: Zacks Investment Research

Other Stocks to Consider

Some other top-ranked stocks from the same industry are NiSource NI, Duke Energy DUK and Entergy Corporation ETR, each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NiSource’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for NI’s 2026 EPS implies an improvement of 7.9% year over year.

The consensus estimate for DUK’s 2026 EPS implies an improvement of 6.3% year over year. The company delivered an average earnings surprise of 4.77% in the last four quarters.

ETR’s long-term earnings growth rate is 11.5%. The Zacks Consensus Estimate for ETR’s 2026 EPS implies an improvement of 12.8% year over year.

Zacks Names #1 Semiconductor Stock

This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

NiSource, Inc (NI): Free Stock Analysis Report

Entergy Corporation (ETR): Free Stock Analysis Report

Pacific Gas & Electric Co. (PCG): Free Stock Analysis Report

Duke Energy Corporation (DUK): Free Stock Analysis Report

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

Zacks Investment Research