Dark Clouds Could Soon Dissipate Over This Utility
PG&E is often overlooked by utility investors mainly because there has been much uncertainty regarding various legal proceedings that have circled this company like a vulture since the tragic gas pipeline transmission incident in San Bruno back in 2010. Management is much more focused on creating safety for its consumers and that could soon bode well for investors interested in a turnaround story. PG&E recently beat bottom- and top-line earnings estimates, and its 4.3% dividend is hard not to get excited about. At the end of the day Q114 lawsuits could hurt growth, but that does seems largely baked into present share valuation. The real news investors should focus on is the upcoming November 19 general rate case decision which, if favorable for PG&E, would allow the company to move forward but pass along modernization and safety costs to consumers during 2014-2016.
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The article Dark Clouds Could Soon Dissipate Over This Utility originally appeared on Fool.com.John Licata has no position in any stocks mentioned. You can follow John on Twitter @bluephoenixinc. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.