Headquartered in Phoenix, Arizona, Pinnacle West Capital Corporation (PNW) provides energy services through its primary subsidiary, Arizona Public Service (APS). With a market cap of $9.94 billion, Pinnacle West focuses on delivering reliable and sustainable electricity to residential, commercial, and industrial customers across Arizona.
PNW has significantly underperformed the broader market over the last year. The stock has gained 11.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 25.6%. However, in 2024, the stock has gained 21.8%, compared to SPX's 18.4% gains on a YTD basis.
Narrowing the focus, PNW also underperformed the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained about 19.5% over the past year. However, the ETF’s 20.5% gains on a YTD basis lagged behind the stock’s returns over the same time frame.
On Aug. 1, PNW reported Q2 earnings. The company reported a net income of $203.80 million, or $1.76 per share, which surpassed Wall Street's expectations of $1.31 per share. The company expects full-year earnings to be $4.60 to $4.80 per share. Shares of PNW gained 2.9% on the day of the earnings release.
For the current fiscal year, ending in December, analysts expect PNW’s EPS to grow 7.7% to $4.75 on a diluted basis. The company's earnings surprise history is promising. It beat the consensus estimate in the last four quarters.
Among the 11 analysts covering PNW stock, the consensus rating is a “Moderate Buy.” That’s based on five “Strong Buy” ratings and six “Holds.”
This configuration is more bullish than a month ago, with four analysts suggesting a “Strong Buy.”
On Aug. 29, Paul Cole from Bank of America Securities maintained a “Buy” rating on Pinnacle West Capital.
The mean price target is $84, which indicates that the stock trades at a premium. The Street-high price target of $89 suggests an upside potential of 1.7%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
