With a market cap of $11.3 billion, Pinnacle West Capital Corporation (PNW) is an energy company that provides retail and wholesale electricity services in Arizona through its subsidiary, Arizona Public Service Company (APS). The company generates, transmits, and distributes electricity using nuclear, gas, oil, coal, and solar power.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Pinnacle West Capital fits this criterion perfectly, exceeding the mark. APS serves residential, commercial, and industrial customers across most of Arizona, excluding parts of Phoenix, Tucson, and Mohave County.
Despite a marginal dip from its 52-week high of $95.83 achieved on Mar. 31, the power company has rebounded with a 12.4% increase in its share price over the past three months. Moreover, it has outperformed the Utilities Select Sector SPDR Fund (XLU)'s 4.4% gain during the same period.
Longer term, Pinnacle West Capital’s shares have risen 5.3% over the past six months, surpassing XLU's 2.9% decline. Also, PNW's shares have surged 28.7% over the past 52 weeks, compared to XLU's 21.2% return over the same time frame.
PNW has been trading mostly above its 50-day and 200-day moving averages since last year, indicating a bullish price trend.
Shares of PNW rose over 1% on Feb. 25 as the company reported a smaller-than-expected Q4 2024 loss of $0.06 per share, while sales of $1.1 billion exceeded estimates. Additionally, strong operational performance, including a 13.5% increase in operating income and improved cash flow, boosted investor confidence. The company's reaffirmed 2025 earnings guidance of $4.40 per share - $4.60 per share, along with its $7.6 billion investment plan for system improvements, further supported positive sentiment.
In comparison with its rival, The Southern Company (SO) has underperformed PNW, gaining over 1% over the past six months. However, SO has risen 29.1% over the past 52 months, slightly outperforming PNW.
Despite PNW’s outperformance, analysts are cautiously optimistic, with a consensus rating of "Moderate Buy" from 14 analysts. As of writing, the stock is trading below the mean price target of $98.
