PG&E Corp‘s PCG stock is down 21% this year and currently trading below important moving averages.

With its fourth-quarter earnings report due to be released on Thursday before the market opens, many investors are eager to find out if the company can turn things around.

The utility company is anticipated to report earnings per share of 31 cents and revenue of $7.11 billion, according to data from Benzinga Pro.

Will PG&E’s Earnings Spark a Market Rebound?

Bearish Trends with Buying Indicators

Chart created using Benzinga Pro

Currently, PCG stock is on a downward trend, trading below its five, 20, and 50-day exponential moving averages. However, there are signs of increasing buying pressure, as the stock’s eight-day simple moving average (SMA) is $15.51, just slightly below its trading price of $15.78, which is regarded as a bullish signal.

In contrast, the 20-day SMA at $16.07, the 50-day SMA at $18.37, and the 200-day SMA at $18.81 still convey bearish signals for PCG stock. Additionally, the Moving Average Convergence Divergence (MACD) at negative 0.84 further indicates a bearish sentiment. The Relative Strength Index (RSI), currently at 37.63, suggests that the stock is approaching oversold territory.

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

JPMorgan: Selloff May Be Overreacted

Analyzing the situation, JPMorgan’s Richard W. Sunderland maintains a positive outlook for PG&E, keeping an Overweight rating and a price target of $22.

The recent selloff of California utility stocks over wildfire fears appears excessive to Sunderland. Unlike Edison International EIX, which faces possible liabilities from the Eaton Fire, PG&E doesn’t have direct exposure to these concerns. Although regulatory challenges might slow its recovery, Sunderland believes a favorable policy shift could help PG&E bounce back.

Could Earnings Be the Turning Point?

The upcoming earnings report from PG&E could be just what investors need.

Shares are already trading at deep discounts, so any positive guidance or updates regarding regulatory risks could ignite a rebound. However, disappointing results could leave the stock stuck in a slump due to wildfire concerns. Investors are left wondering whether Wall Street is willing to invest in a recovery for PG&E.

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