PG&E Corporation PCG scaled a new 52-week high of $60.32 during yesterday’s trading session, before closing a tad lower at $60.31. This San Francisco, CA-based company engages in the generation, procurement and distribution of electricity and natural gas. The stock has delivered a one-year return of about 16.3%.
Over the past 52 weeks, PG&E Corp.’s shares have ranged from a low of $47.33 on Sep 2, 2015 to a high of $60.32 on Jun 1, 2016. The average volume of shares traded over the last three months is approximately 2.4 million.
What is Driving the Stock?
PG&E Corp.’s shares have been on the rise ever since the company declared impressive results for the first quarter of 2016 on May 4. Quarterly earnings of 82 cents per share in the quarter outpaced the Zacks Consensus Estimate of 76 cents by 7.9%. In fact, the company has beaten earnings estimates in three out of the last four quarters, with a positive average surprise of 7.12%. It continues to expects 2016 adjusted earnings from operations in the range of $3.65−$3.85 per share.
Further, PG&E Corp.’s total revenue of $3,974 million in the first-quarter beat the Zacks Consensus Estimate of $3,859 million by 3%. Revenues also increased 1.9% from $3,899 million in the year-ago period. The upside can be attributed to higher electric revenues during the quarter.
PG&E Corp. continues to make systematic investments in gas-related projects and electric system safety and reliability. For 2016, the company expects an outlay of approximately $5.6 billion. Moreover, it anticipates annual capital expenditure of $5.4–$6.5 billion over the 2017–2019 period. These projects will enable the company to provide reliable services to its customers.
Also, consistent and steady growth in customer count should bolster the company’s top line. In the first quarter, PG&E Corp.’s total number of electric customers increased by 36,011 to over 5.3 million. On the other hand, the company added 22,592 customers at its natural gas business during the same period.
Zacks Rank & Key Picks
Currently, PG&E carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space are Avangrid, Inc. AGR, Spark Energy, Inc. SPKE, and Black Hills Corporation BKH. While both Avangrid and Spark Energy sport a Zacks Rank #1 (Strong Buy), Black Hills Corporation holds a Zacks Rank #2 (Buy).
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