Is anyone paying attention to PCG right now? Feels like the perfect time to jump in. It's sitting at 17.20 with a P/E of around 15, which is pretty cheap for a utility. Being in the utility sector, it’s naturally recession-proof, so it holds up well even if the economy tanks. The stock is still down almost 13% from its peak before all the wildfire drama, which was the main reason for the drop.
Before the fires, PCG was growing consistently, and despite everything, it still has one of the highest intrinsic values in the sector based on different valuation models. California isn’t going to stop needing power, and PCG basically has a monopoly in its service area, so the cash flow isn’t going anywhere. The wildfire liabilities were a big hit, but at this point, a lot of that risk is already priced in.
Feels like the market overreacted, and this could be a solid chance to pick up a good defensive stock at a discount. With its monopoly, steady revenue, and undervalued price, this seems like an obvious long-term play. Am I missing something, or is this a no-brainer?