California-based Pacific Gas & Electric Company (PCG) is a major utility provider in northern and central California. The company delivers electricity and natural gas to millions of customers. PCG plays a crucial role in the state's energy infrastructure, prioritizing safety, sustainability, and modernization. It generates electricity using nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic sources. The company has a current market capitalization of $37.40 billion. 

Shares of the leading Californian utility provider have largely underperformed the broader market. PCG’s stock has declined by 23.5% over the past 52 weeks, while the broader S&P 500 Index ($SPX) has gained 16.6% over the same period. This year, the stock has crashed almost 30.7%, while the broader index has returned a modest 8.3%.

The stock’s underperformance becomes even more apparent when compared with the sector-specific S&P 500 Utilities Sector SPDR (XLU) ETF. In stark contrast with the stock, the ETF gained 18.3% over the past 52 weeks and 11.8% year-to-date (YTD). 

The company’s fiscal 2025 first-quarter results, released on April 24, did little to spark investor enthusiasm, with shares staying mostly flat post-earnings. The utility giant posted $5.98 billion in operating revenue, a 2.1% uptick year-over-year, but still shy of Wall Street’s $6.11 billion target. Adding to the disappointment, adjusted EPS dropped 10.8% from the prior year to $0.33, missing the Street's forecast of $0.35.

On the other hand, the company also recorded lower average residential electric rates, which indicates stabilization, and connected over 3,000 new electric customers and nearly 400 new electric vehicle charging ports. The company also reported growth in its data center pipeline. 

For the current fiscal year, ending in December 2025, analysts expect PCG’s EPS to grow 10.3% annually to $1.50 on a diluted basis. The company’s earnings surprise history is mixed. It beat or met the consensus estimate in three of the last four quarters, while missing the forecast on one other occasion. The company is set to report its Q2 results before the market opens on Jul. 31. 

Among the 17 analysts covering PCG’s stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, five “Holds,” and one “Strong Sell” rating. 

The configuration of the ratings has remained relatively steady over the past three months. 

On Jul. 22, Barclays analyst Nicholas Campanella lowered the price target on PCG from $22 to $20, while maintaining an “Overweight” rating on the stock. 

PCG’s mean price target of $20.47 indicates premium of 46.3% from the current market prices. The Street-high price target of $24 implies a potential upside of 71.6%.