Pinnacle West Capital Corporation (PNW) is a regulated electric utility holding company headquartered in Phoenix, Arizona. Valued at $10.5 billion by market cap, it operates primarily through its subsidiary Arizona Public Service (APS), which generates, transmits, and distributes electricity to about 1.4 million customers.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and PNW perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the regulated utilities electric industry. The company benefits from Arizona’s strong population and economic growth, which supports rising electricity demand, while also investing in grid modernization and cleaner energy sources.
Despite its notable strength, PNW slipped 6.2% from its 52-week high of $103.97, achieved on Mar. 16. Over the past three months, PNW stock gained 10.8%, the State Street Utilities Select Sector SPDR Fund’s (XLU) 5.1% uptick over the same time frame.
In the longer term, shares of PNW rose 12% on a six-month basis but climbed 4.1% over the past 52 weeks, underperforming XLU’s six-month gains of 4.6% and 13.7% returns over the last year.
To confirm the bullish trend, PNW has been trading below its 50-day and 200-day moving averages since early January.
On Feb. 25, Pinnacle West reported FY2025 Q4 earnings and its shares dipped marginally. Its operating revenue rose 3% year over year to $1.1 billion, and net income stood at $13 per share, compared to a loss of $0.06 per share in the year-ago quarter. Looking ahead, the company expects its FY2026 consolidated earnings to be within a range of $4.55 to $4.75.
In the competitive arena of the regulated electric utilities industry, Evergy, Inc. (EVRG) has taken the lead over PNW, showing resilience with 8.4% gains on a six-month basis and 17.7% returns over the past 52 weeks.
The stock has a consensus “Moderate Buy” rating from the 17 analysts covering it, and the mean price target of $103.07 suggests a potential upside of 5.6% from current price levels.
