PG&E Corp (PCG-N)

Is good to own with our without rate cuts.

Has data centres and EVs in California. Cheap at 15x PE. As a regulated utility, they will see 10% EPS growth and likely raise their dividend.

A turnaround story, improving under a new CEO. The growth recovery has been rocky but execution is sound. Their growth targets are impressive. Shares have rallied from $10 to $18 in recent years.

A defensive play. Buy on a correction.

A great CEO and a name he's recommended before. They don't pay a dividend, but they could start paying one if they get a rate increase approved. This has rebounded hard from its lows in a beaten-up utilities sector.

A turnaround story to watch. This utility used to be the worst operator--inconsistent numbers, starting wildfires and declared bankruptcy in 2019, but emerged from that in 2022. Now have a new CEO who is turning around the company. Reported a decent quarter in late-February, reiterated their full-year forecast, saw 10% earnings growth in 2022 and showed equal that this year. PCG is more consistent now. Are guiding 10% quarterly earnings growth in 2024 and 9% in 2025 and 2026. Will not issue any new stock through 2024. Won in court in California that will allow them keep running a nuclear power plant. Meanwhile, all the recent rain has been a boom to their hydroelectric dam. However, given a lawsuit a fire victims' trust has been selling huge blocks of shares. Good news is that this trust is no longer the top shareholder. This recent pullback is a buy.

They report Thursday. Shares have been climbing during the divestiture of the Fire Victims Trust.

Their equipment was linked to the wildfires in California last year. It has always been at a discount to the group and it was due to poor safety and reliability figures. This is not their first time being in hot water. He does not want to be involved with these companies. He prefers SRE-N for California utilities.