Electric utility provider, PG&E Corporation (PCG) touched a 52-week high of $54.59 per share during the intraday session on Dec 24, 2014. The share price finally closed a tad lower at $54.46 with traded volume of nearly 1.6 million shares. Over the past one year, PG&E shares have seen a gradual uptrend with the stock now up roughly 34.3% in the same period.
San Francisco, CA-based PG&E reported strong third-quarter results with earnings outpacing the Zacks Consensus Estimate by 50.4% and soaring 96.6% year over year. The company’s quarterly revenues also increased 18.3% from the last year and surpassed the Zacks Consensus Estimate by 1.4%.
Why the Uptrend?
PG&E’s regulated utility asset mix lends a stable earnings base and substantial long-term growth potential. Timely rate relief from regulatory authorities makes this stock less volatile and attractive to investors.
PG&E strives to make considerable progress on gas-related commitments and has set target for electric system safety and reliability. The company has already replaced conventional meters with smartmeters at its electric utility systems.
This Zacks Rank #1 (Strong Buy) company announced in Oct 2014, the opening of an electric distribution control center in Fresno worth $28.5 million. The company will open two additional facilities at Concord and Rocklin. These three facilities will cater to PG&E’s 140,000 miles of electric distribution system serving around 16 million residents of California.
From 2014 through 2016, PG&E continues to target a CAGR of 9% driven by disciplined investment in infrastructure projects.
Moreover, PG&E is growing backed by its service territories which are witnessing economic progress. The company’s increasing customer count and resultant increase in demand for gas and electric indicate strong performance, going ahead.
Other Stocks to Consider
Other well-placed stocks in the electric utility space include Black Hills Corporation (BKH) and The Empire District Electric Company (EDE), sporting a Zacks Rank #1 and IdaCorp, Inc. (IDA) with a Zacks Rank #2 (Buy).
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