PNW

Company Overview: Pinnacle West Capital Corporation, with a market cap of $11.3 billion, operates in Arizona through its subsidiary APS, providing electricity from various sources and showing strong performance with a 12.4% share price increase over the past three months.

Financial Performance: The company reported a smaller-than-expected Q4 loss and exceeded sales estimates, reaffirming its earnings guidance for 2025, while analysts maintain a "Moderate Buy" rating despite the stock trading below the mean price target.

Analyst Ratings: Michael Lonegan from Evercore ISI maintains a Hold rating on Pinnacle West Capital with a price target of $95.00, while the analyst consensus is a Moderate Buy with an average price target of $93.73.

Stock Performance: Pinnacle West Capital's shares closed at $91.64, with a one-year high of $95.42 and a low of $66.77, indicating potential for slight upside based on current evaluations.

Analyst Ratings: Shahriar Pourreza from Guggenheim has maintained a Buy rating on Pinnacle West Capital with a price target of $100, while the average analyst consensus suggests a Moderate Buy rating with a $93.73 target.

Company Performance: Pinnacle West Capital's shares closed at $91.64, showing a one-year high of $95.42 and a low of $66.77, with recent reports highlighting strong earnings and a favorable outlook.

Analyst Ratings: Sarah Akers from Wells Fargo has maintained a Hold rating on Pinnacle West Capital with a price target of $95.00, while the overall analyst consensus suggests a Moderate Buy rating with an average price target of $93.73.

Company Performance: Pinnacle West Capital's shares closed at $93.16, with a one-year high of $95.42 and a low of $66.77, indicating stable performance within the utilities sector.

Management Insights: Pinnacle West Capital Corporation reported strong performance in 2024, with CEO Jeffrey Guldner announcing his retirement and Ted Geisler set to succeed him. The company highlighted regulatory progress, robust grid expansion, and a focus on customer experience amid Arizona's economic growth.

Financial Performance and Outlook: Q4 2024 earnings showed a loss of $0.06 per share, while full-year EPS reached $5.24, exceeding guidance. Management anticipates continued growth with an EPS forecast of $4.40 to $4.60 for 2025, despite challenges from regulatory lag and rising costs.

Financial Performance: Pinnacle West Capital Corp. reported a consolidated net income of $608.8 million for 2024, an increase from $501.6 million in 2023, but experienced a quarterly net loss of $6.8 million for Q4 2024 compared to a minimal loss in the same quarter of 2023.

Growth and Infrastructure Plans: Arizona Public Service (APS) anticipates continued customer growth and increased energy consumption, planning to add nearly 10,000 megawatts of renewable power and storage by 2028 to meet rising demand, while maintaining a focus on reliability and customer satisfaction.

Earnings Expectations: Pinnacle West Capital Corp. anticipates consolidated earnings for 2025 to be between $4.40 and $4.60 per share, with analysts predicting an average of $4.53 per share.

Fourth Quarter Performance: The company reported a net loss of $6.83 million for the fourth quarter, significantly larger than the previous year's loss, while total operating revenues increased to $1.10 billion.

Financial Performance: Pinnacle West Capital reported a Q4 GAAP EPS of -$0.06, beating estimates by $0.09, with revenue of $1.1 billion reflecting a 10.9% year-over-year increase, driven by new customer rates and retail sales growth.

Leadership Change: CEO Jeff Guldner is retiring, with Ted Geisler set to succeed him, while the company projects consolidated earnings for 2025 to be between $4.40 and $4.60 per diluted share.

Earnings Release: Pinnacle West Capital ($PNW) is set to announce its quarterly earnings on February 25th, with analysts predicting revenue of approximately $1.05 billion and a loss of $0.14 per share.

Insider Trading Activity: In the past six months, there has been minimal insider trading for $PNW, with one sale and no purchases, while institutional investors have shown mixed activity by adding and decreasing their positions in the stock.

Company Performance: Pinnacle West Capital Corporation has a market cap of $10.3 billion and has outperformed the S&P 500 over the past year, with a 33.1% stock return compared to the index's 22.8%. The company reported strong Q3 2024 earnings, raising its EPS guidance for 2024 and planning a $9.7 billion investment from 2024 to 2027.

Analyst Ratings and Outlook: The consensus rating among analysts is a "Moderate Buy," with seven "Strong Buy" ratings and eight "Holds." Citi analyst Ryan Levine maintained a "Neutral" rating while increasing the price target to $95, indicating potential upside as PNW trades below the mean price target.

Financial Results Announcement: Pinnacle West Capital Corp. will release its 2024 fourth-quarter and full-year financial results on February 25, 2025, before U.S. markets open, followed by a live webcast and conference call at 11 a.m. ET.

Company Overview: Pinnacle West, based in Phoenix, has over $26 billion in consolidated assets and provides retail electricity to approximately 1.4 million customers through its subsidiary, Arizona Public Service.

Company Overview and Earnings Expectations: Pinnacle West Capital Corporation, valued at $9.9 billion, is a utility holding company focused on sustainable energy in Arizona. It is expected to report a loss of $0.15 per share for Q4, but analysts predict an EPS increase to $5.13 for fiscal 2024.

Stock Performance and Analyst Ratings: PNW's stock has risen 24% over the past year, slightly below the S&P 500's gains. The consensus rating is "Moderate Buy," with a price target suggesting an 8.2% upside from current levels.

ETF Analyst Target Prices: The iShares Core S&P 500 ETF (IVV) has an implied analyst target price of $669.82 per unit, indicating an 11.95% upside from its recent trading price of $598.30. Notable underlying holdings with significant upside include Sempra, Pinnacle West Capital Corp, and Jack Henry & Associates.

Investor Research Considerations: Analysts' target prices may reflect optimism about future stock performance, but there are concerns regarding whether these targets are justified or overly optimistic, necessitating further research by investors into recent company and industry developments.

Current RSI Analysis: Pinnacle West Capital Corp (PNW) has an RSI of 27.8, significantly lower than the average RSI of 52.4 for energy stocks, suggesting potential exhaustion of recent selling pressure and possible buying opportunities.

Stock Performance Overview: PNW's stock is trading at $83.35, which is near its 52-week low of $65.20 and well below its high of $95.42, indicating a slight decline of about 0.9% on the day.

Valuation Insights: Pinnacle West Capital's fair value is estimated at US$113, indicating a potential 25% undervaluation based on its current share price of US$84.77, while analysts have a target price of US$93.27.

Financial Considerations: The company shows earnings growth exceeding the industry but faces risks such as insufficient coverage of debt interest payments and low dividends compared to top competitors in the Electric Utilities market.

Company Overview: Pinnacle West Capital Corporation, based in Phoenix, Arizona, is a mid-cap electric utility company with a market cap of $9.7 billion, providing retail and wholesale electric services primarily through various energy sources including coal, nuclear, gas, oil, and solar.

Stock Performance: PNW stock has shown resilience with an 11.9% gain over the past six months, outperforming its sector, despite a recent dip; it received a "Moderate Buy" rating from analysts, with a price target suggesting a potential upside.

Utility Stocks Performance: Utility stocks have surged by 20% in 2024, driven by the demand for electricity from AI data centers, with companies like Entergy and NiSource positioned to benefit significantly from this trend.

Investment Opportunities: Analysts are optimistic about utilities' potential for growth alongside their traditional role as safe investments, highlighting firms that can secure deals with tech giants as key players in the evolving market landscape.

Investment Comparison: Pinnacle West (PNW) is currently more attractive to value investors than PSEG (PEG), as it has a better Zacks Rank (#2 vs. #3) and more favorable valuation metrics, including lower forward P/E and P/B ratios.

Valuation Metrics: PNW's strong estimate revision activity and its Value grade of B contrast with PEG's D grade, indicating that PNW is perceived as undervalued compared to PEG based on key financial metrics.

Investment Strategy: Dividend investors focus on identifying profitable companies with attractive valuations, utilizing a proprietary DividendRank formula to generate a list of promising stocks for further research.

Pinnacle West Capital Corp: The company pays an annualized dividend of $3.58 per share, with its recent ex-dividend date on 02/03/2025, and analyzing its long-term dividend history is crucial for assessing the sustainability of its dividends.

Leadership Transition: Jeff Guldner will retire as Chairman and CEO of Pinnacle West Capital Corp. and Arizona Public Service (APS) on March 31, 2025, after five years in leadership, with Ted Geisler set to succeed him effective April 1, 2025.

Geisler's Background: Ted Geisler, who has been with APS since 2001 and served as President since 2022, is recognized for his operational and financial expertise, and he aims to continue the company's success while ensuring a smooth transition with Guldner's support until March 2026.