PG&E Stocks: Are Investors Backing the Wrong Horse?

Price return at PG&E disappointed

Pg&e has performed -5.41 percent over the past 12 months. Similar shares in the “electricity utilities” industry rose an average of 7.41 percent, underperforming the industry by -12.83 percent for Pg&e. The average return of the ‘utilities’ sector was 7.41 percent over the past year. Pg&e was 12.83 percent below this average. Poor performance in both industry and sector comparisons results in a “sell” rating in this category.

Interesting mood in PG&E

A look at the discussion on social media shows the following picture: In the past few days, market participants have been generally positive about Pg&e. There were a total of eight positive and five negative days. Once upon a time there was no clear trend. However, the latest news (in the past day or two) about the company is mostly negative. Based on our sentiment analysis, Pg&e is given a “Hold” rating. Overall, Pg&e receives a “Comment” rating from the editors for investor sentiment.

Analysis of the current course based on the RSI

The Relative Strength Index (also known as the Relative Strength Index or RSI) is used in technical analysis to assess whether a stock is overbought or oversold. As a result, overbought stocks are likely to see price reversals in the short term, while oversold stocks are likely to see price gains. For this point of analysis, we consider the 7-day and 25-day RSI for Pg&e. First, the RSI7 is currently standing at 25.37 points, which indicates that Pg&e is oversold. This gives the security a buy rating on the seven-day RSI. The 25-day RSI fluctuates less in comparison. Unlike the Relative Strength Index (RSI) of the last 7 trading days, Pg&e is neither overbought nor oversold on this basis. The stock’s skewed 25-day RSI rating is therefore a “hold” rating. Together, this gives Pg&e security a “buy” rating in this section.

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Lots of upside potential in PG&E

Pg&e has received a total of 2 analyst ratings in the past 12 months. The average rating of a security is ‘Buy’ and consists of 1 review ‘Buy’, 1 ‘Hold’ and 0 ‘Sell’. There are no analyst updates on Pg&e from last month. Based on the average expected price ($15.75 for the security, the upside probability of the security is 44.36 percent (based on the last closing price, $10.91), one follows the analyst’s opinion, so this is a “buy” recommendation. e has a “buy” rating for this section.

What is a basic assessment?

In our view, Pg&e is undervalued compared to the industry average (electricity utilities). The stock trades with a price-to-earnings (P/E) ratio of 10.9, giving it a 73 percent industry P/E gap of 40.74. This results in a “buy” recommendation on a fundamental basis.

Feelings don’t talk about buying

In addition to analyzes from banks, the standard measure of mood about stocks is also the long-term mood among investors and Internet users. The number of posts over a longer period of time and the change in sentiment gives a good long-term picture of sentiment. We checked Pg&e stock for these two factors. The number of posts or the intensity of the discussion showed below average activity, from which we believe a ‘sell’ rating could be generated. Mood change rate for Pg&e showed negative change. This corresponds to a “sell” rating. In this regard, we give Pg&e stock a “Sell” rating in terms of long-term sentiment.

Do you buy, hold or sell PG&E?

How will PG&E evolve now? Is the entry worthwhile or should investors sell instead? Find out the answers to these questions and why you need to act now on your current PG&E analysis.

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