Based in Phoenix, Arizona, Pinnacle West Capital Corporation (PNW) provides retail and wholesale electric services primarily in the state of Arizona. With a market cap of $10.1 billion, the company engages in the generation, transmission, and distribution of electricity using coal, nuclear, gas, oil, and solar generating facilities.
Companies valued at $10 billion or more are generally described as “large-cap” stocks, and Pinnacle West Capital fits right into that category. The company’s main subsidiary, Arizona Public Service (APS), operates and co-owns Palo Verde Generating Station, the largest nuclear plant and the single-largest generator of carbon-free electricity in the U.S. PNW is renowned for its principled focus on ESG and its innovative energy solutions.
Shares of PNW are trading 2.9% below their 52-week high of $91.57, reached on Sep. 17. The electric service provider has increased 17.1% over the past three months, surpassing the broader Dow Jones Industrials Average’s ($DOWI) 8.1% return over the same time frame.
In the longer term, PNW stock is up 23.8% on a YTD basis, surpassing DOWI’s 12.3% gains. However, PNW’s 19.9% gain over the past 52 weeks, lagging behind DOWI’s 26.1 returns over the same time frame.
PNW has been trading above its 200-day moving average since May and has remained above its 50-day moving average since early March despite some fluctuations, indicating a bullish trend.
On Aug. 1, shares of PNW rose 2.9% after reporting a better-than-expected Q2 earnings of $1.76 per share, which increased 87.2% year-over-year and revenues of $1.31 billion, which grew 17% from a year ago. The company benefited from warmer-than-normal weather conditions, solid customer usage, and growth in the quarter. It expects full-year earnings to be in the range of $4.60 per share to $4.80 per share.
PNW has outperformed its rival, Ameren Corporation (AEE), which gained 13.2% over the past 52 weeks and 19.1% on a YTD basis.
Despite PNW’s underperformance relative to the broader market over the past year, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 13 analysts covering the stock, and as of writing, the stock is trading above its mean price target of $88.
On the date of publication, Sohini Mondal 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.
