Pinnacle West Capital Corp (PNW) Stock AnalysisPNWPinnacle West Capital Corp

Pinnacle West Capital Corporation is an electric utility holding company. The Company operates through its subsidiary, Arizona Public Service Company (APS). It is engaged in regulated retail and wholesale electricity businesses and related activities, and includes electricity generation, transmission, and distribution. It owns or leases approximately 6,257 megawatts (MW) of regulated generation capacity and holds a mix of both long-term and short-term power purchase agreements (PPAs) for additional capacity. Its portfolio includes biomass, biogas, coal, energy storage, geothermal, natural gas, solar, and wind. It includes natural gas power plants located throughout Arizona, consisting of Redhawk, located near Palo Verde; Ocotillo, located in Tempe; Sundance, located in Coolidge; West Phoenix, located in southwest Phoenix; Saguaro, located north of Tucson; and Yucca, located near Yuma. It also includes oil-only power plants, which include Douglas and Yucca GT-4. It operates in the Utilities sector (ELECTRIC SERVICES industry).

PNW is a good buy right now due to its strong recent performance and attractive valuation metrics. The current price is $103.42, and the stock has shown a 5-day change of +4.55% and a year-to-date change of +17.34%. The forward P/E ratio is 16.89, indicating potential for growth relative to earnings. However, the main risk is the high debt-to-equity ratio of 160.70%, which could impact financial stability in a rising interest rate environment.

13 analysts cover PNW: 1 rate it Buy, 11 Hold and 1 Sell. The average price target is 94.14.