Kritika Sarmah

Thu, Jun 26, 2025, 3:43 AM2 min read

Phoenix, Arizona-based Pinnacle West Capital Corporation (PNW) provides retail and wholesale electric services primarily in the state of Arizona. With a market cap of $10.8 billion, the company is involved in the generation, transmission, and distribution of electricity from coal, nuclear, gas, oil, and solar sources.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and PNW fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the regulated electric utilities industry. The company benefits from being the primary provider of electricity to residential, commercial, and industrial customers in the state of Arizona.

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PNW currently trades 8% below its 52-week high of $96.50, met on Apr. 3. The stock has dipped 3% over the three months, underperforming the S&P 500 Index’s ($SPX) 5.5% uptick during the same time frame.

However, on a YTD basis, PNW has grown 4.7%, outperforming $SPX's 3.6% rise. Over the past year, PNW has surged 18%, outperforming $SPX’s 11.4% rise over the same period.

To confirm its recent downturn, PNW has been trading below its 200-day moving average since the last trading session and below its 50-day moving average since early May.

On May 1, PNW announced its Q1 earnings, and its shares fell 1.9%. The company reported an 8.5% year-over-year increase in its operating revenues, which totaled approximately $1 billion. Moreover, the company reported a $0.04 net loss per share for the quarter, which fell short of the Street’s expectations by 180%.

Its rival, Xcel Energy Inc. (XEL), has declined marginally in 2025 and has surged 25.3% over the past year, outperforming the stock.

PNW has a consensus rating of “Moderate Buy” from 15 analysts covering it. Its mean price target of $97.71 indicates a modest 10.1% upside potential from the current market price.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com