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Is PG&E (PCG) Stock Undervalued Right Now?

Zacks Equity Research
Atlassian Corporation PLC (TEAM) closed the most recent trading day at $129.55, moving -0.84% from the previous trading session.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is PG&E (PCG). PCG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.45 right now. For comparison, its industry sports an average P/E of 14.36. Over the past 52 weeks, PCG's Forward P/E has been as high as 12.39 and as low as 1.59, with a median of 10.32.

PCG is also sporting a PEG ratio of 1.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PCG's industry has an average PEG of 2.50 right now. Over the last 12 months, PCG's PEG has been as high as 3.54 and as low as 0.46, with a median of 2.52.

Another notable valuation metric for PCG is its P/B ratio of 0.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.60. Over the past 12 months, PCG's P/B has been as high as 1.29 and as low as 0.26, with a median of 1.05.

These are just a handful of the figures considered in PG&E's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PCG is an impressive value stock right now.


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