PG&E Corp (PCG): Today's Featured Utilities Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

PG&E ( PCG) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day down 0.1%. By the end of trading, PG&E fell $0.69 (-1.4%) to $46.90 on average volume. Throughout the day, 2,720,596 shares of PG&E exchanged hands as compared to its average daily volume of 2,979,400 shares. The stock ranged in price between $46.70-$47.75 after having opened the day at $47.37 as compared to the previous trading day's close of $47.59. Other companies within the Utilities sector that declined today were: Niska Gas Storage Partners ( NKA), down 4.7%, Empresa Distribuidora y Comercializadora No ( EDN), down 2.6%, Pure Cycle Corporation ( PCYO), down 2.4% and Ocean Power Technologies ( OPTT), down 2.0%.
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PG&E Corporation, through its subsidiaries, operates as a public utility company in northern and central California. PG&E has a market cap of $20.6 billion and is part of the utilities industry. The company has a P/E ratio of 24.3, above the S&P 500 P/E ratio of 17.7. Shares are up 18.4% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate PG&E a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates PG&E as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, increase in net income, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, RGC Resources ( RGCO), down 4.5%, Companhia De Saneamento Basico Do Estado De ( SBS), down 3.4%, U.S. Geothermal ( HTM), down 2.8% and PVR Partners ( PVR), down 2.8%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the utilities sector could consider Utilities Select Sector SPDR ( XLU) while those bearish on the utilities sector could consider ProShares UltraShort Utilities ( SDP).

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