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What’s Next for PG&E Stock after Cal Fire’s Report?


May. 16 2019, Published 8:08 a.m. ET

PG&E stock looks weak

PG&E (PCG) stock could see some serious pressure after Cal Fire’s report. It is the most volatile stock among utilities recently. Its implied volatility was close to 95% yesterday, significantly higher than its 15-day average.

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PG&E stock is currently trading in the oversold zone with its RSI (relative strength index) at 22. RSI values above 70 or below 30 indicate an imminent reversal in the stock’s direction. The stock looks terribly weak based on its simple moving average levels. It’s trading at $18.06, almost 10% and 37% below its 50-day and 200-day moving average levels.

Analysts look cautious

Analysts still seem to be cautious on the PG&E stock. Among the 13 analysts covering the stock, 11 recommended a “hold,” while two recommended a “strong buy.” Importantly, none of the analysts recommend it as a “sell” as of May 16.

Peers Sempra Energy (SRE) and Edison International (EIX) are up more than 20% and 5% so far this year, respectively. Morgan Stanley increased SRE’s price target from $131.0 to $132.0 on May 16. It’s trading at $129.9 at the moment. Morgan Stanley also increased EIX’s target from $83.0 to $84.0 today.

Read how utility stocks played out recently and where they might go from here in How Utilities Fared amid Broader Market Swings Last Week.


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