We recently published a list of 10 Companies Mirror Wall Street Downturn. In this article, we are going to take a look at where PG&E Corporation (NYSE:PCG) stands against other companies mirroring Wall Street downturn.
Wall Street’s main indices finished the shortened trading week in the negative territory, dampened by labor market data that came in much hotter than expected. The news fueled concerns that the Federal Reserve will not slash interest rates again.
Both the Dow Jones and the Nasdaq Composite dived by 1.63 percent on Friday, while the S&P 500 declined by 1.54 percent.
Ten companies mirrored a wider market downturn amid a series of catalysts that dampened investing appetite. This article explores the reasons behind their decline.
In Friday’s biggest losers, we only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
Brightly-lit nighttime view of an electricity power grid with distribution lines and transmission substations.
PG&E Corporation (NYSE:PCG) shares dived by 10.81 percent on Friday to finish the week at $17.17 each as investor sentiment was dampened by the ongoing wildfire in Los Angeles that has already destroyed thousands of structures and claimed the lives of 10 people.
While the wildfire was not located in PG&E’s service area, analysts said investors remained cautious especially since PG&E had a history of wildfire-related liabilities, with more than $30 billion in legal claims tied to previous fires that led to its 2019 Chapter 11 bankruptcy.
According to reports, the Los Angeles blaze which broke out on Tuesday already resulted in total damage and economic loss of up to $150 billion.
As the fires continue to spread, weather site AccuWeather said that the economic damages could still potentially increase.
PG&E Corporation (NYSE:PCG) is an energy company with businesses in renewable energy, solar, electric vehicles, natural gas vehicles, and battery storage, among others. It has service areas in various portions of California.
Overall, PCG ranks 4th on our list of companies mirroring Wall Street downturn. While we acknowledge the potential of PCG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PCG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. This article is originally published at Insider Monkey.
