PG&E Stock Down 21% YT: Can Q4 Earnings, Wildfire Fallout Spark A Turnaround?

PG&E Corp‘s (NYSE:PCG) stock price has been down 21% year to date and trading well below key moving averages.

But with its fourth-quarter earnings set for release on Thursday before the market opens, investors are watching closely for signs of a turnaround.

The utility giant is expected to report earnings per share of 31 cents on revenue of $7.11 billion, per Benzinga Pro data.

A Bearish Trend, But Signs Of Buying Pressure

Chart created using Benzinga Pro

Technically, PCG stock remains in a strongly bearish trend, trading below its five, 20 and 50-day exponential moving averages. However, buying pressure is emerging, as the stock’s eight-day simple moving average (SMA) sits at $15.51, just below PCG stock trading at $15.78 — a bullish signal.

Yet, the 20-day ($16.07), 50-day ($18.37), and 200-day ($18.81) SMAs still flag bearish signals for PCG stock. The Moving Average Convergence Divergence (MACD) indicator at a negative 0.84 reinforces this bearish sentiment, while an RSI (relative strength index) of 37.63 suggests the stock is nearing oversold territory.

Read Also: Top 3 Utilities Stocks That May Rocket Higher This Month

JPMorgan: The Selloff Looks Overdone

JPMorgan analyst Richard W. Sunderland is staying bullish on PG&E, maintaining an Overweight rating and a $22 price target.

Despite a broad selloff in California utility stocks amid wildfire concerns, Sunderland argues that PCG’s pullback is excessive.

Unlike Edison International (NYSE:EIX), which faces potential liability from the Eaton Fire, PG&E has no direct exposure. While regulatory hurdles could slow a full re-rating, Sunderland believes a policy response could help PCG regain lost ground.

Can Earnings Be The Catalyst?

PG&E's earnings could be the inflection point investors are waiting for.

With shares already trading at deep discounts, any positive guidance or clarity on regulatory risks could spark a rebound.

But if results disappoint, PCG could remain stuck in the wildfire-induced slump. The question now is whether Wall Street is ready to bet on a recovery.

Read Next:

• Cannabis Grow Facilities Consume 100 Times More Energy Than The Average Walmart

Image: Shutterstock