Pinnacle West Capital Corporation (PNW), headquartered in Phoenix, Arizona, provides retail and wholesale electric services. Valued at $10.5 billion by market cap, the company provides retail and wholesale electric service to most of the State of Arizona. PNW is also involved in real estate development activities in the western U.S.
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 utilities - regulated electric industry. PNW invests heavily in clean energy. Half of Arizona Public Service's electricity comes from clean energy, positioning PNW favorably in the market and aligning with regulatory requirements and consumer preferences.
Despite its notable strength, PNW slipped 9% from its 52-week high of $96.50, achieved on Apr. 3. Over the past three months, PNW stock gained 2.2%, underperforming the Dow Jones Industrials Average’s ($DOWI) 5.2% gains during the same time frame.
In the longer term, shares of PNW fell 1.2% on a six-month basis but climbed 2.1% over the past 52 weeks, underperforming DOWI’s six-month gains of 13.2% and 10.1% returns over the last year.
To confirm the bearish trend, PNW has been trading below its 50-day and 200-day moving averages since late October, with slight fluctuations.
On Nov. 3, PNW shares closed up more than 1% after reporting its Q3 results. Its revenue stood at $1.8 billion, up 2.9% year over year. The company’s EPS increased marginally from the year-ago quarter to $3.39.
In the competitive arena of utilities - regulated electric, Evergy, Inc. (EVRG) has taken the lead over PNW, showing resilience with 9% gains on a six-month basis and 19.3% returns over the past 52 weeks.
Wall Street analysts are reasonably bullish on PNW’s prospects. The stock has a consensus “Moderate Buy” rating from the 17 analysts covering it, and the mean price target of $97.07 suggests a potential upside of 10.5% from current price levels.
On the date of publication, Neha Panjwani 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.
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