PG&E (US:PCG) ZACKS·2025-12-26 14:51Core Viewpoint - PG&E Corporation (PCG) is positioned as a strong investment opportunity due to its clean energy initiatives, declining interest rates, and systematic infrastructure investments, enhancing service reliability [1] Growth Outlook & Surprise History - The Zacks Consensus Estimate for 2025 and 2026 earnings per share is projected at $1.50 and $1.64, indicating year-over-year growth of 10.29% and 9.05% respectively [2] - Revenue estimates for 2025 and 2026 are $25.88 billion and $27.54 billion, reflecting year-over-year improvements of 6.0% and 6.39% respectively [2] - PCG's long-term earnings growth rate is forecasted at 15.89%, with an average positive earnings surprise of 0.47% over the last four quarters [2] Capital Investment and Clean Energy Plan - PCG plans to invest $12.9 billion in 2025 and an additional $73 billion from 2026 to 2030, targeting 10% earnings growth for 2025 and a long-term annual growth rate of at least 9% during 2026-2030 [3] Clean Energy Initiatives - The company is investing in battery energy storage, achieving a goal of 580 megawatts of operational storage capacity by the end of 2024, aiming to deliver 90% of retail energy sales from renewable and zero-carbon sources by 2035 [4] Dividend History - PCG's current dividend yield is 1.26%, with a fourth-quarter dividend of 5 cents per share, leading to an annualized dividend of 20 cents [5] - The company aims for a dividend payout ratio of 7% for 2025, expected to grow to 20% by 2026-2030 [5] Return on Equity - PCG's Return on Equity (ROE) stands at 11.10%, surpassing the industry average of 9.60%, indicating effective utilization of shareholders' funds [6] Solvency - The times interest earned ratio (TIE) for PCG at the end of Q3 2025 is 1.8, demonstrating the company's ability to meet long-term debt obligations [8] Share Price Performance - Over the past three months, PCG's stock has increased by 5.6%, outperforming the industry's growth of 1.4% [9]