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 $1.65, which indicates year-over-year growth of 10%.
The consensus estimate for 2026 sales is $26.50 billion, which indicates year-over-year growth of 6.3%.
PCG’s long-term (three to five years) earnings growth rate is 15.9%.
The company delivered an average earnings surprise of 4.46% 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 11.95% compared with its industry’s average of 11.09%. 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 of nearly $3.36 billion in the first quarter of 2026 and plans to invest $12.4 billion in 2026 and nearly $73 billion during 2026-2030. 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 storage contracts in 2025, scheduled for deployment over the next several years. It also operated 183 MW of utility-owned battery storage 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 first quarter of 2026 was 1.86. 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 month, PCG shares have risen 2.3% against the industry’s decline of 2.3%.
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Other Stocks to Consider
Other top-ranked stocks from the same sector are Pampa Energia PAM, Consolidated Edison ED and Duke Energy DUK. PAM currently sports a Zacks Rank #1 (Strong Buy). ED and DUK carry a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
PAM’s long-term (three to five years) earnings growth rate is 2.9%. The Zacks Consensus Estimate for PAM’s 2026 earnings indicates year-over-year growth of 39.8%.
ED’s long-term earnings growth rate is 6.5%. The consensus estimate for ED’s 2026 earnings indicates year-over-year growth of 6.8%.
DUK’s trailing four-quarter earnings surprise is 4.06%, on average. The Zacks Consensus Estimate for DUK’s 2026 earnings indicates year-over-year growth of 6.3%.
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Pacific Gas & Electric Co. (PCG): Free Stock Analysis Report
Duke Energy Corporation (DUK): Free Stock Analysis Report
Consolidated Edison Inc (ED): Free Stock Analysis Report
Pampa Energia S.A. (PAM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).