Key Takeaways PNW expects 4-6% weather-normalized sales growth in 2026, led by manufacturing and data centers. PNW secured nearly 4.5 GW of committed high-load demand, mainly from data centers and manufacturers. PNW plans to invest $7.95B from 2026 to 2028 in generation, transmission and distribution assets. Pinnacle West Capital (PNW - Free Report) benefits from robust economic growth across its service territory, driven by population growth and rising investments in semiconductor manufacturing, data centers and other industrial facilities. These trends support customer growth, boost electricity demand, drive infrastructure investments and expand the regulated rate base.
PNW projects 1.5-2.5% retail customer growth and 4-6% weather-normalized sales growth in 2026. Demand from new manufacturing facilities and several large data centers is expected to contribute 3-5% in 2026 and support 5-7% annual sales growth through 2030. The company has secured nearly 4.5 gigawatts of committed extra high-load customer demand, primarily from data centers and large manufacturers.
The expansion of TSMC's fabrication facilities and increasing investments from semiconductor suppliers across Arizona are driving higher industrial power demand. Rising industrial activity should boost electricity demand and support PNW's long-term earnings growth.
To meet rising electricity demand, PNW continues to expand its infrastructure. Pinnacle West Capital plans to invest $7.95 billion between 2026 and 2028 in generation, transmission and distribution assets to improve reliability and cater to rising demand across its service region. PNW also maintains its 2026 earnings guidance of $4.55-$4.75 per share, indicating confidence in continued demand growth. Construction has started on the Redhawk expansion, which will add approximately 400 megawatts of natural gas capacity, while the company advances the Desert Sun project and evaluates additional generation resources for 2029-2031.
Strong economic expansion, rising industrial electricity demand and disciplined capital investments position PNW to deliver sustainable earnings growth and create long-term value for shareholders.
Economic Expansion Fuels Long-Term Utility GrowthUtilities benefit from economic growth as expanding businesses, industries, data centers and electric vehicle adoption increase electricity demand. This supports utility investments, generates fresh demand for utility services, drives earnings growth and creates long-term shareholder value.
Evergy (EVRG - Free Report) is benefiting from expanding economic activity across Kansas and Missouri. Rising investments in data centers, advanced manufacturing and commercial projects support long-term rate-base and earnings growth.
PPL Corporation (PPL - Free Report) benefits from growing economic activity across Pennsylvania and Kentucky. Expanding data center and industrial investments are driving electricity demand, supporting rate-base expansion and long-term earnings growth.
The Zacks Rundown on PNWPNW’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates a decrease of 6.34% and an increase of 17.60%, respectively, year over year.
Image Source: Zacks Investment Research
PNW’s Dividend YieldPNW currently offers a 3.45% dividend yield, exceeding the Zacks Utility - Electric Power industry's 3.02% average over the past year.
Image Source: Zacks Investment Research
PNW’s Stock Price PerformanceIn the past six months, Pinnacle West Capital shares have risen 14.1% compared with the industry’s 4.6% growth.
California Public Employees Retirement System lowered its position in Pinnacle West Capital Corporation (NYSE:PNW – Free Report) by 13.2% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 275,327 shares of the utilities provider’s stock after selling 41,749 shares during the period. California Public Employees Retirement System owned about 0.23% of Pinnacle West Capital worth $27,739,000 at the end of the most recent reporting period.
Other hedge funds also recently bought and sold shares of the company. Kera Capital Partners Inc. lifted its holdings in Pinnacle West Capital by 13.4% in the first quarter. Kera Capital Partners Inc. now owns 4,535 shares of the utilities provider’s stock valued at $457,000 after acquiring an additional 537 shares during the period. Assetmark Inc. grew its stake in shares of Pinnacle West Capital by 32.8% during the 1st quarter. Assetmark Inc. now owns 1,719 shares of the utilities provider’s stock valued at $173,000 after purchasing an additional 425 shares during the period. NovaPoint Capital LLC grew its stake in shares of Pinnacle West Capital by 9.8% during the 1st quarter. NovaPoint Capital LLC now owns 13,741 shares of the utilities provider’s stock valued at $1,384,000 after purchasing an additional 1,222 shares during the period. Bessemer Group Inc. increased its position in shares of Pinnacle West Capital by 26.1% during the 1st quarter. Bessemer Group Inc. now owns 4,934 shares of the utilities provider’s stock valued at $496,000 after purchasing an additional 1,020 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC increased its position in shares of Pinnacle West Capital by 1,510.9% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 115,939 shares of the utilities provider’s stock valued at $11,771,000 after purchasing an additional 108,742 shares during the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.
Pinnacle West Capital Stock Down 0.7% NYSE PNW opened at $105.61 on Wednesday. The stock’s 50-day moving average price is $104.01 and its 200-day moving average price is $100.19. The company has a quick ratio of 0.39, a current ratio of 0.60 and a debt-to-equity ratio of 1.38. Pinnacle West Capital Corporation has a 52 week low of $85.32 and a 52 week high of $111.16. The company has a market capitalization of $12.80 billion, a P/E ratio of 19.67, a price-to-earnings-growth ratio of 3.87 and a beta of 0.43.
Pinnacle West Capital (NYSE:PNW – Get Free Report) last posted its quarterly earnings data on Monday, May 4th. The utilities provider reported $0.27 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.03) by $0.30. The firm had revenue of $1.15 billion for the quarter, compared to analysts’ expectations of $1.08 billion. Pinnacle West Capital had a return on equity of 9.27% and a net margin of 11.99%.The business’s quarterly revenue was up 11.4% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.04) EPS. Pinnacle West Capital has set its FY 2026 guidance at 4.550-4.750 EPS. On average, equities research analysts predict that Pinnacle West Capital Corporation will post 4.73 earnings per share for the current year.
Pinnacle West Capital Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Monday, August 3rd will be given a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date is Monday, August 3rd. Pinnacle West Capital’s dividend payout ratio is presently 67.78%.
Insider Buying and Selling at Pinnacle West Capital In other news, EVP Jacob Tetlow sold 6,567 shares of the stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $99.00, for a total value of $650,133.00. Following the completion of the sale, the executive vice president directly owned 6,634 shares of the company’s stock, valued at $656,766. This represents a 49.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.19% of the stock is currently owned by insiders.
Wall Street Analyst Weigh In Several brokerages have recently weighed in on PNW. Jefferies Financial Group reiterated a “buy” rating and issued a $129.00 price objective on shares of Pinnacle West Capital in a research note on Wednesday, July 8th. Argus boosted their target price on shares of Pinnacle West Capital from $95.00 to $106.00 and gave the company a “buy” rating in a research report on Tuesday, April 14th. Wells Fargo & Company set a $106.00 target price on shares of Pinnacle West Capital in a report on Tuesday, April 21st. TD Cowen increased their price target on shares of Pinnacle West Capital from $100.00 to $101.00 and gave the stock a “hold” rating in a research report on Friday, May 15th. Finally, Truist Financial dropped their price target on shares of Pinnacle West Capital from $108.00 to $105.00 and set a “hold” rating on the stock in a research note on Friday, May 29th. Three research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $104.14.
Get Our Latest Stock Report on PNW
Pinnacle West Capital Profile (Free Report)
Pinnacle West Capital Corporation is a publicly traded utility holding company headquartered in Phoenix, Arizona. Through its principal subsidiary, Arizona Public Service Company (APS), Pinnacle West generates, transmits and distributes electricity to more than one million residential, commercial and industrial customers across central and southern Arizona. The company’s regulated operations focus on delivering safe, reliable power while meeting evolving environmental standards.
The company’s diversified generation portfolio includes natural gas–fired plants, the nuclear-powered Palo Verde Generating Station—the largest nuclear facility in the United States by net output—plus growing investments in solar and battery storage projects.
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Investors looking for stocks in the Utility - Electric Power sector might want to consider either Exelon (EXC) or Pinnacle West (PNW). But which of these two stocks presents investors with the better value opportunity right now?
Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Pinnacle West Capital Corp. (NYSE: PNW) announced today that it plans to release its 2026 second-quarter financial results before U.S. financial markets open o
PHOENIX--(BUSINESS WIRE)--Pinnacle West Capital Corp. plans to release its 2026 second-quarter financial results before U.S. financial markets open on Tuesday, Aug. 4, 2026.
PHOENIX--(BUSINESS WIRE)--Arizona Public Service (APS) announced today it plans to convert two units at its Cholla Power Plant in Joseph City, Navajo County, Arizona to natural gas. The repurposed resource, with operations beginning in 2029, will help meet the state’s growing energy demand while maintaining reliable, affordable electric service for customers.
Originally commissioned in 1962, the Cholla Power Plant played a vital role in powering Arizona for decades, providing a critical power supply to the state. Beginning in the last decade, federal environmental mandates forced the phased retirement of the plant’s coal units, completed in March 2025. APS plans to convert two units at the site to natural gas, preserving its legacy in the state while leveraging existing transmission lines and infrastructure to support Arizona’s energy future.
“Cholla has been an important part of the communities of Joseph City, Holbrook, Navajo County and northeastern Arizona for decades and has been foundational to Arizona’s energy grid,” said Johnny Penrod, APS Vice President of Generation. “Repurposing the Cholla Power Plant for natural gas allows us to build on that legacy – supporting reliable, affordable energy for our customers while continuing to invest in the communities who have long supported this plant.”
Navajo County Supervisor Jason Whiting, who frequently met with APS leadership to advocate for Cholla to be converted to natural gas, expressed his appreciation for the company's decision. “I could not be more excited by this announcement," Whiting stated. "APS's decision to convert Cholla into a natural gas plant will strengthen our local economy, create jobs and support our schools. Even more importantly, it will help power our state with reliable, affordable energy.”
Supporting Arizona’s growth with a diverse energy mix
Arizona is one of the fastest-growing states in the country, and its energy needs are projected to rise significantly in the coming years. Transitioning the Cholla Power Plant to natural gas could:
Add approximately 380 megawatts (MW) of energy.Provide enough power to serve about 61,000 homes across Arizona.By repurposing an existing site, APS can provide customers with a cost-effective solution while strengthening reliability. Natural gas plays a key role by:
Its ability to provide around-the-clock power to meet customer needs at any time of the day.Responding quickly to changes in customer peak energy demand.Complementing renewable energy resources like solar and wind power and battery energy storage.The facility would further support APS’s diverse energy mix – which includes nuclear from the Palo Verde Generating Station, natural gas, coal, solar, wind and battery energy storage – ensuring top-tier, reliable service as Arizona continues to grow.
Renewed economic impact and community benefits
Repowering the Cholla site with natural gas is expected to provide meaningful economic benefits for Joseph City, Holbrook and surrounding communities by reinvigorating the plant’s presence in the region. The project will support hundreds of jobs during construction and, once in operation, is expected to provide several dozen permanent jobs to help run the facility. The plant will also provide meaningful tax revenue to the area and help stimulate new economic activity.
Looking ahead
Construction on the gas conversion is expected to begin in 2028 with a targeted in-service date in 2029. This project will need to go through formal permitting and planning processes and will include ongoing community outreach through open houses, newsletters and aps.com/chollaconversion.
APS serves 1.5 million homes and businesses in 11 of Arizona’s 15 counties and is a leader in safely delivering reliable, affordable electricity in the Southwest. With 140 years of experience serving Arizona, APS is the main subsidiary of Pinnacle West Capital Corp. (NYSE: PNW).
Key Takeaways PNW's capital plan aims to strengthen grid reliability and support long-term earnings growth. PNW plans nearly $7.95B in 2026-2028 investments across transmission, distribution and generation. PNW expects 4-6% retail sales growth in 2026, driven by manufacturing facilities and data centers. Pinnacle West Capital (PNW - Free Report) benefits from its strategic capital investment plan, which strengthens grid reliability, supports rising electricity demand and drives sustainable long-term earnings growth. These investments are aimed at improving system reliability, supporting customer growth and expanding the company's regulated asset base.
PNW aims to invest $2.6 billion in 2026 and nearly $7.95 billion during 2026-2028, allocating about $2.11 billion to transmission, $2.31 billion to distribution and $2.28 billion to generation infrastructure. These investments support a 7-9% rate base growth through 2028 and advance strategic transmission projects.
The company is witnessing strong growth in electricity demand, supported by sustained economic development across its service territory. Arizona continues to attract semiconductor manufacturers, large data centers and other large industrial customers that require 24x7 reliable power. The company expects retail electricity sales to grow 4-6% in 2026, driven primarily by expanding manufacturing facilities and data centers. It projects 5-7% annual weather-normalized sales growth through 2030. PNW is expanding its power infrastructure to meet growing demand and recover its investments through regulatory approvals.
The company continues to target 5-7% long-term EPS growth, supported by sustained infrastructure investment and increasing electricity demand. PNW's systematic capital allocation, expanding regulated rate base and constructive regulatory framework provide a solid foundation for future earnings growth.
Capital Investments Strengthening Regulated GrowthCapital investments strengthen regulated utility growth through grid modernization, transmission expansion, improved reliability and renewable integration. These investments expand the regulated asset base, support timely cost recovery and drive stable earnings and long-term growth.
FirstEnergy Corp. (FE - Free Report) expects to invest $36 billion over 2026-2030 to strengthen its regulated transmission and distribution business. The capital plan prioritizes grid modernization and infrastructure upgrades, supporting an estimated 10% compound annual rate base growth.
PPL Corporation (PPL - Free Report) plans to invest nearly $23 billion during 2026-2029, supporting an average annual rate base growth of 10.3%. These investments strengthen energy infrastructure, expand cleaner generation, improve reliability and maintain affordable electricity for customers.
PNW’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates a decrease of 6.73% and an increase of 18.05%, respectively, year over year.
Image Source: Zacks Investment Research
PNW’s Dividend YieldPNW currently offers a 3.42% dividend yield, exceeding the Electric Power industry 2.99% average over the past year.
Image Source: Zacks Investment Research
PNW’s Stock Price PerformanceIn the past month, the company’s shares have risen 7% compared with the industry’s 3.3% growth.
Investors with an interest in Utility - Electric Power stocks have likely encountered both ENGIE - Sponsored ADR (ENGIY) and Pinnacle West (PNW). But which of these two companies is the best option for those looking for undervalued stocks?
PHOENIX--(BUSINESS WIRE)--Pinnacle West Capital Corporation’s (NYSE: PNW) board of directors today declared a quarterly dividend of $0.91 per share of common stock, payable on Sept. 1, 2026, to shareholders of record at the close of business on Aug. 3, 2026.
General Information
Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of about $31 billion, about 6,200 megawatts of generating capacity and approximately 6,600 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the company provides retail electricity service to about 1.5 million Arizona homes and businesses. For more information about Pinnacle West, visit the company’s website at pinnaclewest.com.
Investors interested in stocks from the Utility - Electric Power sector have probably already heard of ENGIE - Sponsored ADR (ENGIY) and Pinnacle West (PNW). But which of these two stocks is more attractive to value investors?
The U.S. Department of Energy has set a goal to triple America's nuclear power generation capacity by the middle of the century. And that won't be as difficult as you might imagine.
In terms of nuclear energy production, the United States leads the pack. In fact, America generates 30% of the world's nuclear power. But nuclear makes up about 18% of the nation's power generation.
The only real issue is time; it takes years to build a new nuclear power plant. That's likely why some power companies have been collaborating with big tech companies to bring decommissioned nuclear plants back online.
Still, it will be years before the ball really gets rolling on expanding American nuclear capabilities further. And that actually makes nuclear power companies prime dividend opportunities.
Image source: Getty Images.
Turning the desert green Pinnacle West Capital Corp. (PNW +0.95%) is a bit of an under-the-radar nuclear play. It's a holding company that controls Arizona Public Service (APS), a utilities company in Arizona.
APS happens to operate the Palo Verde nuclear plant in Arizona. That plant is not only the single largest nuclear plant in the United States, it's also the most productive power plant nationwide.
To any other nuclear power geeks out there, the plant is incredibly cool. It has three reactors, a trait shared by only two other plants and exceeded by only one. Alone, the plant produces 32 million megawatt-hours annually, powering over 4 million homes and businesses in the Southwest.
The company isn't resting on its laurels either, it's working to renew its Palo Verde operating licenses for the next 20 years. It has also partnered up with other Arizona utilities companies, namely the Salt River Project and Tucson Electric Power to explore deploying more nuclear plants in Arizona. Of particular interest to APS are small modular reactors (SMR).
Finally, the company is looking to expand into other clean energy generation opportunities, in particular solar power. The company plans to bring its APS-owned Ironwood Solar Plant in Yuma online this year.
And, because Pinnacle West is a less obvious nuclear power producer, it seems to have avoided the massive run-up in share price other nuclear companies saw in the past year, which killed their yields.
Pinnacle West is only up 7.29% over the past 12 months and so its yield is 3.69% right now, considerably better than most other nuclear power companies like Constellation Energy at about 0.54%.
Today's Change
(
0.95
%) $
0.97
Current Price
$
103.37
Its payout ratio is a relatively high but fairly healthy 71.19%, but it has been higher in the past, so the company has brought that back down when it's needed to. It has also raised its dividend for five years in a row.
In addition to its solid yield, the company is fairly healthy, aside from its high debt-to-equity ratio of 2. It runs a net profit margin of 11.83% and it grew its revenue 4.2% over 2024 in 2025. Its net income grew 1.2% over the same period.
Arizona is a growing state that needs more power. That's especially true with companies in the energy-intensive semiconductor industry, like Taiwan Semiconductor Manufacturing, expanding their footprint in Arizona massively over the coming years.
Pinnacle West allows you to profit from both the nuclear renaissance and semiconductor industry growth trends. Consider it for a long-term dividend play.
SG Americas Securities LLC reduced its stake in Pinnacle West Capital Corporation (NYSE:PNW – Free Report) by 17.7% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 27,171 shares of the utilities provider’s stock after selling 5,830 shares during the period. SG Americas Securities LLC’s holdings in Pinnacle West Capital were worth $2,410,000 at the end of the most recent quarter.
Other hedge funds also recently bought and sold shares of the company. Assenagon Asset Management S.A. raised its stake in shares of Pinnacle West Capital by 133.4% in the 4th quarter. Assenagon Asset Management S.A. now owns 920,687 shares of the utilities provider’s stock valued at $81,665,000 after acquiring an additional 526,212 shares during the period. TABR Capital Management LLC purchased a new position in shares of Pinnacle West Capital during the 4th quarter worth approximately $787,000. 180 Wealth Advisors LLC acquired a new stake in Pinnacle West Capital in the 4th quarter valued at approximately $206,000. Wealth Enhancement Advisory Services LLC increased its holdings in Pinnacle West Capital by 12.7% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 35,827 shares of the utilities provider’s stock valued at $3,198,000 after purchasing an additional 4,024 shares during the last quarter. Finally, Wedmont Private Capital purchased a new stake in Pinnacle West Capital in the fourth quarter valued at approximately $223,000. Hedge funds and other institutional investors own 91.51% of the company’s stock.
Analyst Upgrades and Downgrades Several research analysts have recently commented on the company. Weiss Ratings restated a “buy (b)” rating on shares of Pinnacle West Capital in a research report on Thursday, January 22nd. Stifel Nicolaus set a $107.00 target price on Pinnacle West Capital in a research note on Thursday, February 26th. Morgan Stanley set a $96.00 target price on Pinnacle West Capital in a report on Friday, February 20th. Citigroup lifted their target price on Pinnacle West Capital from $100.00 to $109.00 and gave the company a “neutral” rating in a research report on Thursday, February 26th. Finally, UBS Group boosted their price target on shares of Pinnacle West Capital from $94.00 to $95.00 and gave the stock a “neutral” rating in a research note on Wednesday, December 17th. Three equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Pinnacle West Capital presently has an average rating of “Hold” and a consensus target price of $100.92.
Read Our Latest Analysis on Pinnacle West Capital
Pinnacle West Capital Stock Down 0.1% Shares of NYSE:PNW opened at $102.64 on Friday. The firm has a fifty day moving average price of $98.58 and a 200 day moving average price of $92.67. Pinnacle West Capital Corporation has a 1-year low of $85.32 and a 1-year high of $103.97. The stock has a market cap of $12.41 billion, a P/E ratio of 20.28, a P/E/G ratio of 3.77 and a beta of 0.49. The company has a debt-to-equity ratio of 1.30, a current ratio of 0.54 and a quick ratio of 0.36.
Pinnacle West Capital (NYSE:PNW – Get Free Report) last issued its quarterly earnings results on Wednesday, February 25th. The utilities provider reported $0.13 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.05 by $0.08. The business had revenue of $1.13 billion for the quarter, compared to analyst estimates of $1.17 billion. Pinnacle West Capital had a net margin of 11.55% and a return on equity of 8.82%. The business’s revenue was up 3.0% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.06) earnings per share. Pinnacle West Capital has set its FY 2026 guidance at 4.550-4.750 EPS. Sell-side analysts predict that Pinnacle West Capital Corporation will post 5.13 EPS for the current year.
Pinnacle West Capital Profile (Free Report)
Pinnacle West Capital Corporation is a publicly traded utility holding company headquartered in Phoenix, Arizona. Through its principal subsidiary, Arizona Public Service Company (APS), Pinnacle West generates, transmits and distributes electricity to more than one million residential, commercial and industrial customers across central and southern Arizona. The company’s regulated operations focus on delivering safe, reliable power while meeting evolving environmental standards.
The company’s diversified generation portfolio includes natural gas–fired plants, the nuclear-powered Palo Verde Generating Station—the largest nuclear facility in the United States by net output—plus growing investments in solar and battery storage projects.
See Also Five stocks we like better than Pinnacle West Capital Want to see what other hedge funds are holding PNW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Pinnacle West Capital Corporation (NYSE:PNW – Free Report).
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PHOENIX--(BUSINESS WIRE)--Pinnacle West plans to release its 2026 first-quarter financial results before U.S. financial markets open on Monday, May 4, 2026.
Massachusetts Financial Services Co. MA lowered its position in Pinnacle West Capital Corporation (NYSE:PNW – Free Report) by 2.8% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,900,385 shares of the utilities provider’s stock after selling 83,241 shares during the quarter. Massachusetts Financial Services Co. MA owned approximately 2.42% of Pinnacle West Capital worth $257,264,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds have also recently bought and sold shares of the company. Capital Research Global Investors grew its stake in Pinnacle West Capital by 5.0% in the third quarter. Capital Research Global Investors now owns 15,853,302 shares of the utilities provider’s stock valued at $1,421,407,000 after purchasing an additional 758,190 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC grew its stake in Pinnacle West Capital by 8.5% in the third quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 7,223,725 shares of the utilities provider’s stock valued at $647,679,000 after purchasing an additional 568,581 shares in the last quarter. Reaves W H & Co. Inc. grew its stake in Pinnacle West Capital by 21.3% in the third quarter. Reaves W H & Co. Inc. now owns 1,804,114 shares of the utilities provider’s stock valued at $161,757,000 after purchasing an additional 316,193 shares in the last quarter. First Trust Advisors LP grew its stake in Pinnacle West Capital by 6.3% in the third quarter. First Trust Advisors LP now owns 1,307,421 shares of the utilities provider’s stock valued at $117,223,000 after purchasing an additional 76,930 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its stake in Pinnacle West Capital by 9.9% in the third quarter. Dimensional Fund Advisors LP now owns 1,265,651 shares of the utilities provider’s stock valued at $113,466,000 after purchasing an additional 113,585 shares in the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.
Pinnacle West Capital Price Performance Shares of NYSE:PNW opened at $103.67 on Monday. Pinnacle West Capital Corporation has a fifty-two week low of $85.32 and a fifty-two week high of $104.92. The business has a 50-day moving average of $99.54 and a two-hundred day moving average of $93.30. The stock has a market capitalization of $12.55 billion, a P/E ratio of 20.49, a P/E/G ratio of 3.80 and a beta of 0.49. The company has a debt-to-equity ratio of 1.30, a current ratio of 0.54 and a quick ratio of 0.36.
Pinnacle West Capital (NYSE:PNW – Get Free Report) last announced its quarterly earnings results on Wednesday, February 25th. The utilities provider reported $0.13 earnings per share for the quarter, topping analysts’ consensus estimates of $0.05 by $0.08. Pinnacle West Capital had a return on equity of 8.82% and a net margin of 11.55%.The company had revenue of $1.13 billion during the quarter, compared to analysts’ expectations of $1.17 billion. During the same quarter in the previous year, the firm earned ($0.06) earnings per share. The business’s quarterly revenue was up 3.0% compared to the same quarter last year. Pinnacle West Capital has set its FY 2026 guidance at 4.550-4.750 EPS. On average, equities research analysts predict that Pinnacle West Capital Corporation will post 5.13 EPS for the current fiscal year.
Analyst Ratings Changes A number of analysts have weighed in on PNW shares. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Pinnacle West Capital in a research report on Thursday, January 22nd. Morgan Stanley set a $96.00 price target on Pinnacle West Capital in a research report on Friday, February 20th. TD Cowen boosted their price target on Pinnacle West Capital from $97.00 to $100.00 and gave the stock a “hold” rating in a research report on Thursday, February 26th. Barclays boosted their price target on Pinnacle West Capital from $97.00 to $101.00 and gave the stock an “equal weight” rating in a research report on Tuesday, March 31st. Finally, Stifel Nicolaus set a $107.00 price target on Pinnacle West Capital in a research report on Thursday, February 26th. Three research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Pinnacle West Capital presently has an average rating of “Hold” and a consensus price target of $100.92.
Read Our Latest Report on PNW
Pinnacle West Capital Profile (Free Report)
Pinnacle West Capital Corporation is a publicly traded utility holding company headquartered in Phoenix, Arizona. Through its principal subsidiary, Arizona Public Service Company (APS), Pinnacle West generates, transmits and distributes electricity to more than one million residential, commercial and industrial customers across central and southern Arizona. The company’s regulated operations focus on delivering safe, reliable power while meeting evolving environmental standards.
The company’s diversified generation portfolio includes natural gas–fired plants, the nuclear-powered Palo Verde Generating Station—the largest nuclear facility in the United States by net output—plus growing investments in solar and battery storage projects.
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NiSource (NYSE:NI – Get Free Report) and Pinnacle West Capital (NYSE:PNW – Get Free Report) are both large-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.
Earnings & Valuation This table compares NiSource and Pinnacle West Capital”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio NiSource $6.64 billion 3.45 $929.50 million $1.95 24.49 Pinnacle West Capital $5.34 billion 2.33 $616.53 million $5.06 20.34 NiSource has higher revenue and earnings than Pinnacle West Capital. Pinnacle West Capital is trading at a lower price-to-earnings ratio than NiSource, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility NiSource has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Pinnacle West Capital has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.
Dividends NiSource pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. Pinnacle West Capital pays an annual dividend of $3.64 per share and has a dividend yield of 3.5%. NiSource pays out 61.5% of its earnings in the form of a dividend. Pinnacle West Capital pays out 71.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NiSource has increased its dividend for 14 consecutive years.
Institutional and Insider Ownership 91.6% of NiSource shares are owned by institutional investors. Comparatively, 91.5% of Pinnacle West Capital shares are owned by institutional investors. 0.4% of NiSource shares are owned by company insiders. Comparatively, 0.2% of Pinnacle West Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations This is a summary of recent recommendations and price targets for NiSource and Pinnacle West Capital, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score NiSource 0 3 9 1 2.85 Pinnacle West Capital 1 11 3 0 2.13 NiSource presently has a consensus price target of $48.09, indicating a potential upside of 0.70%. Pinnacle West Capital has a consensus price target of $102.21, indicating a potential downside of 0.70%. Given NiSource’s stronger consensus rating and higher probable upside, equities analysts plainly believe NiSource is more favorable than Pinnacle West Capital.
Profitability This table compares NiSource and Pinnacle West Capital’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets NiSource 13.99% 8.07% 2.64% Pinnacle West Capital 11.55% 8.82% 2.12% Summary NiSource beats Pinnacle West Capital on 15 of the 18 factors compared between the two stocks.
About NiSource (Get Free Report)
NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. It operates in two segments, Gas Distribution Operations and Electric Operations. The company distributes natural gas to approximately 3.3 million customers through approximately 55,000 miles of distribution main pipeline and the associated individual customer service lines; and 1,000 miles of transmission main pipeline in northern Indiana, Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. It also generates, transmits, and distributes electricity to approximately 0.5 million customers in various counties in the northern part of Indiana, as well as engages in wholesale electric and transmission transactions. It owns and operates coal-fired electric generating stations in Wheatfield and Michigan City; combined cycle gas turbine in West Terre Haute; natural gas generating units in Wheatfield; hydro generating plants in Carroll County and White County; wind generating units in White County, Indiana; and solar generating units in Jasper County and White County. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1847 and is headquartered in Merrillville, Indiana.
About Pinnacle West Capital (Get Free Report)
Pinnacle West Capital Corporation, through its subsidiary, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using coal, nuclear, gas, oil, and solar generating facilities. Its transmission facilities include overhead lines and underground lines; and distribution facilities consist of overhead lines and underground primary cables. The company also owns and maintains transmission and distribution substations; and owns energy storage facilities. Pinnacle West Capital Corporation was incorporated in 1985 and is headquartered in Phoenix, Arizona.
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PHOENIX--(BUSINESS WIRE)--Pinnacle West declared a quarterly dividend of $0.91 per share of common stock, payable on June 1, 2026, to shareholders of record on May 4, 2026.
WEC Energy (WEC) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Pinnacle West (PNW - Free Report) . This company, which is in the Zacks Utility - Electric Power industry, shows potential for another earnings beat.
When looking at the last two reports, this power company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 85.76%, on average, in the last two quarters.
For the last reported quarter, Pinnacle West came out with earnings of $0.13 per share versus the Zacks Consensus Estimate of $0.05 per share, representing a surprise of 160.00%. For the previous quarter, the company was expected to post earnings of $3.04 per share and it actually produced earnings of $3.39 per share, delivering a surprise of 11.51%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Pinnacle West. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Pinnacle West currently has an Earnings ESP of +40.00%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on May 4, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Pinnacle West (PNW - Free Report) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of a loss of $0.03 per share. This compares to a loss of $0.04 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +910.81%. A quarter ago, it was expected that this power company would post earnings of $0.05 per share when it actually produced earnings of $0.13, delivering a surprise of +160%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Pinnacle West, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $1.15 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 6.42%. This compares to year-ago revenues of $1.03 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Pinnacle West shares have added about 16.7% since the beginning of the year versus the S&P 500's gain of 5.6%.
What's Next for Pinnacle West?While Pinnacle West has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Pinnacle West was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.49 on $1.42 billion in revenues for the coming quarter and $4.70 on $5.58 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, AES (AES - Free Report) , has yet to report results for the quarter ended March 2026.
This power company is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of +85.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
AES's revenues are expected to be $3.1 billion, up 6% from the year-ago quarter.
Investors interested in stocks from the Utility - Electric Power sector have probably already heard of Pampa Energia (PAM - Free Report) and Pinnacle West (PNW - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Pampa Energia is sporting a Zacks Rank of #1 (Strong Buy), while Pinnacle West has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PAM has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
PAM currently has a forward P/E ratio of 9.02, while PNW has a forward P/E of 22.01. We also note that PAM has a PEG ratio of 3.09. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PNW currently has a PEG ratio of 3.79.
Another notable valuation metric for PAM is its P/B ratio of 1.2. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PNW has a P/B of 1.75.
These metrics, and several others, help PAM earn a Value grade of B, while PNW has been given a Value grade of C.
PAM has seen stronger estimate revision activity and sports more attractive valuation metrics than PNW, so it seems like value investors will conclude that PAM is the superior option right now.
Key Takeaways Pinnacle West posted Q1 earnings of 27 cents per share, beating estimates and year-ago results. PNW generated $1.15B in Q1 revenues, up 11.36% year over year and above consensus estimates. PNW reaffirmed 2026 EPS guidance and plans $7.95B investments through 2028 to strengthen operations. Pinnacle West Capital Corporation (PNW - Free Report) reported first-quarter 2026 earnings of 27 cents per share, which beat the Zacks Consensus Estimate of a loss of three cents per share by a whopping 1000%. The bottom line improved substantially from a loss of four cents reported in the year-ago quarter.
Total Revenues of PNWSales for the quarter totaled $1.15 billion, which surpassed the Zacks Consensus Estimate of $1.08 billion by 6.48%. The top line increased 11.36% from $1.03 billion recorded in the year-ago quarter.
Pinnacle West Capital Corporation Price, Consensus and EPS SurprisePNW’s Operational HighlightsTotal operating expenses were $1.02 billion, up 4.45% year over year, due to higher fuel and purchased power, as well as other expenses.
Operating income totaled $131.2 million, up 129.2% from $57.2 million recorded in the year-ago quarter.
Total interest expenses were $125.8 million, up 19.84% from $104.9 million reported in the prior-year period.
PNW’s Financial HighlightsAs of March 31, 2026, cash and cash equivalents totaled $6.41 million compared with $6.60 million as of Dec. 31, 2025.
As of March 31, 2026, long-term debt-less current maturities amounted to $9.80 billion compared with $9.21 billion as of Dec. 31, 2025.
Net cash flow provided by operating activities in the first quarter of 2026 totaled $235.3 million compared with $401.9 million in the year-ago period.
PNW’s GuidanceThe company continues to expect its 2026 consolidated earnings in the range of $4.55-$4.75 per share and projects 5-7% long-term EPS growth from the 2024 earnings base. The Zacks Consensus Estimate for the same is pegged at $4.70, higher than the midpoint of the company’s guided range.
The company projects its 2026 revenues in the range of $5.56-$5.66 billion.
During 2026, management projects its retail customers to increase 1.5-2.5%. Retail electricity sales growth of 4-6%, driven partly by new large manufacturing facilities and multiple large data centers, is expected to contribute 3-5% to sales growth.
Pinnacle West plans to invest $2.60 billion in 2026 and $7.95 billion in the 2026-2028 period to further strengthen its operations.
PNW’s Zacks RankPinnacle West currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Utility ReleasesWEC Energy Group (WEC - Free Report) is scheduled to report first-quarter results on May 5. The Zacks Consensus Estimate for first-quarter EPS is pinned at $2.33, which implies a year-over-year increase of 2.64%.
The Zacks Consensus Estimate for first-quarter sales is pinned at $3.21 billion, which suggests year-over-year growth of 1.91%.
NiSource (NI - Free Report) is scheduled to report first-quarter results on May 6. The Zacks Consensus Estimate for first-quarter EPS is pinned at $1.06, which implies a year-over-year increase of 8.16%.
The Zacks Consensus Estimate for first-quarter sales is pinned at $2.43 billion, which suggests year-over-year growth of 12.01%.
PPL Corporation (PPL - Free Report) is scheduled to report first-quarter results on May 8. The Zacks Consensus Estimate for first-quarter EPS is pinned at 61 cents, which implies a year-over-year increase of 1.67%.
The Zacks Consensus Estimate for first-quarter sales is pinned at $2.62 billion, which suggests year-over-year growth of 4.65%.
Pinnacle West (PNW) is upgraded from sell to hold as shares approach fair value after a strong technical breakout and solid Q1 results. PNW delivered Q1 GAAP EPS of $0.27 and revenue of $1.15B, beating expectations, with robust 9.4% retail sales growth driven by 14.6% C&I demand. Management reaffirmed FY 2026 EPS guidance of $4.55–$4.75 and targets 5–7% long-term EPS growth, supported by $10.4B capex through 2028.
Key Takeaways FirstEnergy is framed as the better 2026 utility pick after a side-by-side fundamentals review. FE EPS estimates: $2.73 in 2026 and $2.94 in 2027, implying 7.06% and 7.73% growth. FE targets $36B investment in 2026-2030; debt-to-capital 65.55% and ROE 10.66%. Companies operating in the Zacks Utility - Electric Power industry are engaged in generating and delivering electricity to millions of consumers across the United States. The regulated operation of the utilities supports cost recovery and stable returns, while rising customer demand drives earnings growth. They offer attractive dividends and stable returns, making them a reliable defensive investment choice. Utilities are now producing more electricity from clean sources to meet rising demand.
Electricity demand in the United States is rising, driven by higher residential demand, the reshoring of industries and increasing data center demands. Companies operating in this industry are making strategic investments in renewable expansion, grid modernization and strengthening distribution networks to maintain service reliability.
Amid the rising importance of electricity generation, transmission and distribution companies, let us discuss FirstEnergy Corporation (FE - Free Report) and Pinnacle West Capital (PNW - Free Report) . These two electric utilities target carbon neutrality by 2050 and are investing heavily in infrastructure, grid modernization and renewable energy expansion, making them comparable in the utility space.
FirstEnergy, with its regulated structure and operating through subsidiaries, serves millions of customers across the United States. Its strategic capital investment in infrastructure development supports rate base growth and renewable expansion. The company’s ‘Energize365’ is a multi-year grid evolution platform prioritizing customer affordability, with rates at or below those of in-state peers. It enhances service reliability and supports the company’s long-term growth initiatives.
Pinnacle West Capital stands out with its regulated framework and operations through subsidiaries, serving millions of customers across the state of Arizona. The company is aided by strong economic development in its service territories, an expanding customer base, a rise in data center demand and higher commercial activities. PNW invests systematically in expanding renewable assets, grid modernization and infrastructure development, which enhances operational efficiency and strengthens financial performance.
Pinnacle West Capital and FirstEnergy are among the leading utility stocks, and a side-by-side comparison of their fundamentals can help determine which offers the more attractive investment opportunity.
FE & PNW’s Earnings ProjectionsThe Zacks Consensus Estimate for FE’s earnings per share is pegged at $2.73 for 2026 and $2.94 for 2027, suggesting year-over-year growth of 7.06% and 7.73%, respectively. FE’s long-term (three to five years) earnings growth is currently pinned at 7.64%.
Image Source: Zacks Investment Research
On the other side, PNW’s earnings per share are pegged at $4.71 for 2026, suggesting a year-over-year fall of 6.73%, and $5.57 for 2027, suggesting year-over-year growth of 18.13%. PNW’s long-term earnings growth is currently pinned at 6.03%.
Image Source: Zacks Investment Research
Debt to CapitalThe Zacks Utilities sector is a capital-intensive one, and regular investment is required for infrastructure and technological upgrades, as well as for expanding operations. These utilities combine internally generated cash flows with borrowed funds from capital markets to finance long-term investments, ensuring steady growth and service reliability.
Pinnacle West Capital's debt-to-capital ratio currently stands at 60.73% compared to FirstEnergy’s 65.55%. Both companies are using debt to fund their business. PNW and FE’s debt levels are higher than the industry’s 59.94%, with FE’s being higher, indicating greater reliance on borrowed funds.
Return on EquityReturn on Equity (“ROE”) is an important measure reflecting how efficiently a company utilizes shareholders’ funds to generate returns. ROE highlights management’s effectiveness in utilizing invested capital to grow earnings and enhance shareholder value.
FirstEnergy’s current ROE is 10.66%, outperforming Pinnacle West Capital, which reports a slightly lower ROE 9.27%. FE utilizes shareholder capital more efficiently and generates higher profits, though both companies’ returns remain below the industry average of 11.09%.
Image Source: Zacks Investment Research
Capital Investment PlansUtilities’ operations are capital-intensive, as huge funds are required for infrastructure development, enhancing system reliability and maintaining the existing assets. Electric utilities engaged in power generation and distribution are continuously investing in grid modernization, renewable expansion, energy storage and replacement of outdated equipment.
FirstEnergy aims to invest $36 billion in 2026-2030 to strengthen its electric transmission, distribution and generation infrastructure, and expand renewable energy capacity. PNW plans to invest $7.95 billion in 2026-2028 to strengthen generation, distribution and transmission structure, supporting service reliability and rate base growth.
Price PerformancePNW shares have gained 2.3% in the past three months compared to FE’s decline of 8.0%.
Image Source: Zacks Investment Research
Summing UpFirstEnergy and Pinnacle West Capital are benefiting from rising load growth, driven by data center demand, an expanding customer base and significant infrastructure investments to support millions of customers across the United States.
FE’s stronger earnings estimate revisions, higher return on equity and broader capital expenditure plan make it a more attractive choice in the utility sector.
Based on the above discussion, FirstEnergy currently has an edge over Pinnacle West Capital, though both presently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in Utility - Electric Power stocks are likely familiar with ENGIE - Sponsored ADR (ENGIY - Free Report) and Pinnacle West (PNW - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, ENGIE - Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while Pinnacle West has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ENGIY likely has seen a stronger improvement to its earnings outlook than PNW has recently. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ENGIY currently has a forward P/E ratio of 12.70, while PNW has a forward P/E of 21.41. We also note that ENGIY has a PEG ratio of 3.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PNW currently has a PEG ratio of 3.68.
Another notable valuation metric for ENGIY is its P/B ratio of 1.63. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PNW has a P/B of 1.72.
These are just a few of the metrics contributing to ENGIY's Value grade of A and PNW's Value grade of C.
ENGIY has seen stronger estimate revision activity and sports more attractive valuation metrics than PNW, so it seems like value investors will conclude that ENGIY is the superior option right now.
A month has gone by since the last earnings report for Pinnacle West (PNW - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Pinnacle West due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Pinnacle West Q1 Earnings Beat Estimates, Revenues Increase Y/Y
Pinnacle West Capital Corporation reported first-quarter 2026 earnings of 27 cents per share, which beat the Zacks Consensus Estimate of a loss of three cents per share by a whopping 1000%. The bottom line improved substantially from a loss of four cents reported in the year-ago quarter.
Total Revenues of PNWSales for the quarter totaled $1.15 billion, which surpassed the Zacks Consensus Estimate of $1.08 billion by 6.48%. The top line increased 11.36% from $1.03 billion recorded in the year-ago quarter.
PNW’s Operational HighlightsTotal operating expenses were $1.02 billion, up 4.45% year over year, due to higher fuel and purchased power, as well as other expenses.
Operating income totaled $131.2 million, up 129.2% from $57.2 million recorded in the year-ago quarter.
Total interest expenses were $125.8 million, up 19.84% from $104.9 million reported in the prior-year period.
PNW’s Financial HighlightsAs of March 31, 2026, cash and cash equivalents totaled $6.41 million compared with $6.60 million as of Dec. 31, 2025.
As of March 31, 2026, long-term debt-less current maturities amounted to $9.80 billion compared with $9.21 billion as of Dec. 31, 2025.
Net cash flow provided by operating activities in the first quarter of 2026 totaled $235.3 million compared with $401.9 million in the year-ago period.
PNW’s GuidanceThe company continues to expect its 2026 consolidated earnings in the range of $4.55-$4.75 per share and projects 5-7% long-term EPS growth from the 2024 earnings base. The Zacks Consensus Estimate for the same is pegged at $4.70, higher than the midpoint of the company’s guided range.
The company projects its 2026 revenues in the range of $5.56-$5.66 billion.
During 2026, management projects its retail customers to increase 1.5-2.5%. Retail electricity sales growth of 4-6%, driven partly by new large manufacturing facilities and multiple large data centers, is expected to contribute 3-5% to sales growth.
Pinnacle West plans to invest $2.60 billion in 2026 and $7.95 billion in the 2026-2028 period to further strengthen its operations.
How Have Estimates Been Moving Since Then?Investors have witnessed a downward trend in estimates review over the past two months.
VGM ScoresCurrently, Pinnacle West has a subpar Growth Score of D, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Pinnacle West has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerPinnacle West is part of the Zacks Utility - Electric Power industry. Over the past month, Edison International (EIX - Free Report) , a stock from the same industry, has gained 3%. The company reported its results for the quarter ended March 2026 more than a month ago.
Edison International reported revenues of $4.1 billion in the last reported quarter, representing a year-over-year change of +7.7%. EPS of $1.42 for the same period compares with $1.37 a year ago.
Edison International is expected to post earnings of $1.05 per share for the current quarter, representing a year-over-year change of +8.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -1%.
Edison International has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Company to Showcase Exciting Lineup of Rigs from Customers and Brand Ambassadors, Including a Forest River Palomino Pause Travel Trailer
REDMOND, Ore., June 11, 2026 (GLOBE NEWSWIRE) -- Expion360 Inc. (Nasdaq: XPON) (“Expion360”), an industry leader in lithium-ion battery power storage solutions, today announced its participation as a Title Sponsor at Overland Expo PNW 2026 taking place June 26-28, 2026, at the Deschutes County Expo Center in Redmond, Oregon. Show hours Friday, June 26 and Saturday, June 27 are 9:00am-5:00pm Pacific time, and Sunday, June 28 9:00am-3:00pm Pacific time.
As a Title Sponsor, Expion360 will be featured prominently throughout the event and can be found at booth FG18. Visitors are invited to stop by and experience firsthand the products and technology that power some of the most capable overland builds on the road today.
Expion360 will showcase an exciting lineup of rigs from the Company's customers and brand ambassadors, offering attendees a real-world look at how Expion360 solutions perform in demanding off-road and overland environments.
Featured builds include:
Expion360 ambassador Chivas Sotelo will be on hand with his 2026 Ford F350 hosting a Four Wheel Camper Hawk Slide-In Camper, a customer build powered by 2x Expion360 EX2 240Ah Edge LiFePO4 batteries and 5x GC2 162Ah LiFePO4 batteries, delivering serious off-grid capability for the long haul.Expion360 employee Casey Inman will be showcasing his 2021 Dodge 2500 Power Wagon paired with a Four Wheel Camper Project M Topper Truck Camper, a customer build running on 2x Expion360 GC2 162Ah LiFePO4 batteries.Expion360 ambassador Andy Catts, owner of Beadlock Coffee, will be serving up fresh coffee straight from his iconic 1976 Toyota Land Cruiser FJ40, a rig running entirely on a single Expion360 EX2 240Ah LiFePO4 battery. Stop by for a cup and see how clean, reliable lithium power makes even a vintage build completely self-sufficient.Rounding out the lineup is a Forest River Palomino Pause Travel Trailer, equipped with 3x Expion360 EX1 368Ah LiFePO4 batteries, demonstrating the power and versatility of Expion360 solutions across a wide range of camping and overlanding platforms. Expion360 invites all Overland Expo PNW attendees to visit booth FG18 to meet the team, see the rigs, and learn more about what Expion360 has to offer the overland community.
About Overland Expo
Overland Expo® is the premier overlanding event series in the world—no other event offers the scope of classes taught by the world’s leading experts alongside a professional-level trade show that brings together all the camping and vehicle and motorcycle equipment and services you need to Get Outfitted. Get Trained. Get Inspired. Get Going. For more information visit overlandexpo.com.
About Expion360
Expion360 is an industry leader in premium lithium iron phosphate (LiFePO4) batteries and accessories for recreational vehicles and marine applications, with residential and industrial applications under development.
The Company’s lithium-ion batteries feature half the weight of standard lead-acid batteries while delivering three times the power and ten times the number of charging cycles. Expion360 batteries also feature better construction and reliability than other lithium-ion batteries on the market due to their superior design and quality materials. Specially reinforced, fiberglass-infused, premium ABS and solid mechanical connections help provide top performance and safety. Expion360 delivers advanced lithium battery technology that powers every adventure, every mission, for the moments that matter.
The Company is headquartered in Redmond, Oregon. Expion360 lithium-ion batteries are available today through more than 300 dealers, wholesalers, private-label customers, and OEMs across the country.
To learn more about the Company, visit expion360.com.
