PCG vs. NEE: Which Stock Is the Better Value Option?
ZACKS·2025-11-27 17:40

Core Insights - The article compares PG&E (PCG) and NextEra Energy (NEE) to determine which stock is more attractive to value investors [1][3] Valuation Metrics - PG&E has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to NextEra Energy, which has a Zacks Rank of 3 (Hold) [3] - PG&E's forward P/E ratio is 10.67, significantly lower than NextEra Energy's forward P/E of 23.25, suggesting that PG&E may be undervalued [5] - The PEG ratio for PG&E is 0.67, while NextEra Energy's PEG ratio is 2.88, indicating that PG&E has a better valuation relative to its expected earnings growth [5] - PG&E's P/B ratio is 1.15, compared to NextEra Energy's P/B of 2.76, further supporting the notion that PG&E is undervalued [6] Value Grades - PG&E has a Value grade of A, while NextEra Energy has a Value grade of D, highlighting PG&E's superior valuation metrics and earnings outlook [6]