uploads///PCG dm

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

By

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.

Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Article continues below advertisement

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.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.