Pinnacle West's Focus on Investments & Clean Energy Bodes Well

Pinnacle West Capital Corporation’s PNW focus on expanding its renewable capacity along with systematic investments is likely to enhance its existing operations. Also, the utility’s efforts to minimize expenses amid the ongoing pandemic will aid its earnings.

The Zacks Consensus Estimate for 2020 earnings is pegged at $4.82 per share, indicating growth of 1.05% from the year-ago reported figure. Also, the consensus mark for current-year revenues stands at $3.5 billion, suggesting 0.92% growth from the prior-year reported number. Additionally, long-term (three-five years) earnings growth of the company is pegged at 4.70%.

The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past six months, shares of the utility have gained 12.6%, underperforming the industry’s rise of 24.5%.

What’s Driving the Stock?

Pinnacle West’s investments in clean power generation, and transmission & distribution lines will help it expand its customer base with more responsibility and better efficiency. The company projects capital expenditures of $1,331 million, $1,650 million and $1,725 million for 2020, 2021 and 2022, respectively. Moreover, through the implementation of new policies, the utility is reducing its Operations and Maintenance expenses as well as enhancing its customer benefits and shareholder value.

Apart from growing its utility infrastructure, Pinnacle West continues to focus on increasing its renewable strength. Under the Integrated Resource Plan, the company expects to add 2,894 megawatt of clean energy to its portfolio. Also, it announced its objective to deliver 100% clean carbon-free electricity to customers by 2050.

Likewise, other electric utilities are also making efforts to supply clean and reliable energy to its customers. Some of the companies, namely Duke Energy DUK, DTE Energy DTE and Xcel Energy Inc. XEL are planning to provide absolute clean energy by 2050.


However, Pinnacle West’s progress could be hindered by fluctuations in commodity prices, stringent environmental regulations and unplanned outages in nuclear generation facilities.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Pinnacle West Capital Corporation (PNW): Free Stock Analysis Report
Xcel Energy Inc. (XEL): Free Stock Analysis Report
DTE Energy Company (DTE): Free Stock Analysis Report
Duke Energy Corporation (DUK): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.