PCG

PG&E reported quarterly earnings of $0.41 per share, missing the consensus estimate of $0.42 and falling short on revenues. The company received a Zacks Rank #4 (Sell) rating due to unfavorable estimate revision trends, with shares expected to underperform the market. The Utility - Electric Power industry ranks in the bottom 38% of Zacks industries.

PG&E is set to report Q3 2026 results on October 22, with projected sales of $6.59 billion (up 5.4% YoY) but earnings expected to decline 16% to 42 cents per share. Growing electricity demand from EV adoption, data centers, and building electrification should support growth, while lower operating expenses may help offset earnings pressure. The company's negative Earnings ESP (-1.21%) and Zacks Rank #4 suggest limited likelihood of an earnings beat.

The article examines three S&P 500 stocks down over 80% from their all-time highs: Nike, PayPal, and PG&E. While deeply discounted valuations might attract contrarian investors, the author recommends caution. Nike faces persistent competitive pressures and declining consumer value perception.

PayPal, despite a 82% decline, maintains solid fundamentals with 5% revenue growth and a 45% market share in online payments, making it potentially worth buying. PG&E remains burdened by wildfire liability concerns and uncertain government policy protection, making it a risky bet.

PG&E Corporation (PCG), California's largest regulated electric and gas utility, is highlighted as a stock to watch with a #3 (Hold) Zacks Rank and a B VGM Score. The company features an attractive Value Style Score of A with a forward P/E ratio of 7.96. One analyst revised earnings estimates upward in the last 60 days, with the Zacks Consensus Estimate at $1.65 per share and an average earnings surprise of +8%.

PG&E stock rose 3.63% to $13.13 on October 9, 2026, as investors anticipate its October 22 earnings call and wildfire-liability commentary. Despite the gain, PG&E shares remain down 17% over the past year due to wildfire liability concerns from Los Angeles fires and delayed state legislative action on utility liability protection. However, the company may benefit from increased electricity demand driven by the AI boom and California's data center growth.