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4 Reasons to Add Pinnacle West (PNW) to Your Portfolio Now

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Pinnacle West Capital Corporation’s (PNW - Free Report) steady capital investments to strengthen its existing infrastructure and add more renewable units to the electricity generation portfolio are boosting its performance.

Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Growth Projections

The Zacks Consensus Estimate for 2020 earnings per share and revenues is pegged at $5.09 and $3.54 billion, suggesting an increase of 6.7% and 2.1%, respectively, from the year-ago quarter.

The consensus mark for 2021 earnings and revenues is pegged at $5.00 per share and $3.65 billion, respectively. The top-line estimate suggests a 2.97% year-over-year increase.

Surprise History & Long-Term Earnings Growth

Pinnacle West’s trailing four-quarter earnings surprise is 27.2%, on average.

Its long-term (three to five years) earnings growth is currently pegged at 3.95%.

Return on Equity & Dividend Yield

Return on Equity (ROE) indicates how efficiently a company is utilizing shareholders’ funds to generate returns. At present, its ROE is 11.16%, higher than the industry average of 9.24%.

Currently, the company has a dividend yield of 3.83% compared with the industry’s 3.35%.

Regular Investments

Pinnacle West makes consistent investments to upgrade and maintain the existing infrastructure for providing 24x7 reliable services to the expanding customer base. The company has plans to invest $1,263 million, $1,650 million and $1,725 million in 2020, 2021, and 2022, respectively, to strengthen and expand its existing infrastructure. The ongoing investments and planned future spending will assist the company to make its systems clean and services affordable as well as reliable, along with develop innovative programs to assist customers.

Price Performance

Over the past 12 months, the stock has gained 0.8% against the industry’s decline of 0.3%.

Other Stocks to Consider

Other top-ranked stocks in the same space include Otter Tail Corporation (OTTR - Free Report) , Portland General Electric Company (POR - Free Report) and PNM Resources Inc. , each currently holding a Zacks Rank #2 (Buy).

Otter Tail, Portland General Electric and PNM Resources delivered an average earnings surprise of 9.9%, 98.1% and 9.3% in the last four quarters, respectively.

The Zacks Consensus Estimate for 2020 earnings for Otter Tail, Portland General Electric, and PNM Resources has moved up 1.8%, 7.5%, and 2.7%, respectively, in the past 60 days.

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>>

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