Stock Price & Analysis

Based on current analyst sentiment and stock performance, PNW stock is a hold with potential for slight upside. The average price target suggests moderate buy sentiment.

The price prediction for PNW stock in 2025 is $95, supported by Fibonacci resistance levels and analyst targets. The stock is expected to rise due to favorable analyst sentiment and technical indicators. Current price trends and analyst consensus suggest a moderate upside.

The S1 support level for PNW Stock is $90.06 ,The R1 resistant level for PNW Stock is $93.95.

As of the end of day on 2025-03-17, the price of PNW Stock was $93.6.

The target price for PNW Stock according to analyst rating is 92.78, with the highest price target at 104.00 and the lowest at 84.00. Analysts have a Moderate Buy rating on PNW Stock overall.

The market cap of PNW is $10.7B.

Analysis and Insights

Valuation Metrics

Pinnacle West Capital (PNW) currently trades at a forward P/E ratio of 16.18, which is slightly above the industry average of 15, suggesting potential overvaluation. Additionally, its EV/EBITDA ratio of 9.74 is higher than the industry average of 8-9, further indicating a premium valuation.

Dividend Yield and Analyst Sentiment

The stock offers a dividend yield of 4.19%, which is attractive for income-focused investors. However, the average analyst price target of $93.73 implies only a 2.28% upside from current levels, signaling limited growth potential. Analysts are mixed, with a Moderate Buy consensus rating, but key firms like Wells Fargo and Morgan Stanley maintain a Hold rating.

Recent Performance and Risks

PNW reported strong Q4 earnings, but the stock has struggled to break above $95 due to concerns over regulatory headwinds, particularly the upcoming Arizona rate case. While the company has a stable dividend history, its valuation multiples remain elevated compared to historical levels.

Conclusion

Based on the analysis, PNW appears overvalued given its premium valuation metrics and limited upside potential. Investors may want to wait for a correction or clearer catalysts before entering.

Pinnacle West Capital Corporation is an energy holding company that conducts business through its subsidiaries, Arizona Public Service Company (APS), El Dorado Investment Company (El Dorado) and Pinnacle West Power, LLC. The Company's business segment is its regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses (primarily electric service to Native Load customers) and related activities, and includes electricity generation, transmission, and distribution. APS provides electric service to approximately 1.4 million customers. APS is also the operator and co-owner of Palo Verde, a primary source of electricity for the southwest United States and the nuclear power plant in the United States. El Dorado owns debt investments and minority interests in several energy-related investments and Arizona community-based ventures. Palo Verde is a three-unit nuclear power plant located approximately 50 miles west of Phoenix, Arizona.

Price Prediction for PNW Stock by 2030

Based on current trends and analyst expectations, Pinnacle West Capital (PNW) is projected to reach $120-$140 by 2030. This forecast considers the company's strong earnings performance, increased investments in renewable energy, and favorable regulatory developments.

PNW has a total of 81 employees.