PCG vs. CNP: Which Stock Should Value Investors Buy Now?

Core Viewpoint - Investors in the Utility - Electric Power sector should consider PG&E (PCG) and CenterPoint Energy (CNP) as potential value opportunities, with PG&E currently presenting a superior value option based on valuation metrics [1][6]. Valuation Metrics - Both PG&E and CenterPoint Energy have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3]. - PG&E has a forward P/E ratio of 11.04, significantly lower than CenterPoint Energy's forward P/E of 22.42, suggesting that PG&E is undervalued relative to its earnings potential [5]. - The PEG ratio for PG&E is 0.69, while CenterPoint Energy's PEG ratio is 2.83, further indicating that PG&E is a better value option when considering expected earnings growth [5]. - PG&E's P/B ratio is 1.19, compared to CenterPoint Energy's P/B of 2.34, reinforcing the notion that PG&E is more attractively priced relative to its book value [6]. - Based on these valuation metrics, PG&E earns a Value grade of A, while CenterPoint Energy receives a Value grade of C, highlighting the relative strength of PG&E as a value investment [6].