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Pinnacle West Set to Grow on Investments, Economic Recovery
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Despite Pinnacle West Capital Corporation (PNW - Free Report) missing earnings estimates in the fourth quarter of 2016, two analysts have raised estimates for the current quarter, while none have guided lower. This has not yet been reflected in the stock, as is evident from the company’s Zacks Rank #3 (Hold), which indicates expectations of in-line performance in the near term. However, the bullish analyst sentiment indicates that the stock’s growth story is intact and this stock might just be the one flying under the radar.
Pinnacle West steadily invests in the diversification and expansion of its asset base and will emphasize primarily on expanding its traditional generation, distribution and transmission operations. The Ocotillo modernization project and the Selective Catalytic Reduction Pollution Controls at the Four Corners Generating Plant are part of Pinnacle West’s modernization initiatives.
Pinnacle West projects capital expenditure of $1,337 million, $1,124 million and $994 million in 2017, 2018 and 2019, respectively. The company expects to invest heavily in infrastructure upgrades to serve its expanding customer base.
Moreover, Pinnacle West’s subsidiary, Arizona Public Service (APS), is the largest and longest-serving electric utility provider in Arizona. The state is witnessing a gradual economic recovery fueled by the rapidly developing Phoenix Metropolitan Area. In 2016, employment in Metro Phoenix increased 2.7% compared with 1.7% in the U.S.
APS witnessed retail customer growth of 1.4% in 2016 and expects annual customer growth in the range of 2–3% over the 2017–2019 period.
On the flip side, Pinnacle West, along with its subsidiaries, is subject to numerous environmental laws and regulations, and changes in, or liabilities under, existing or new laws or regulations. Cost of complying with new regulations could increase cost of operations while failure to meet the same might impact its business plans.
Key Picks
A few favorably placed stocks in the utility space include CenterPoint Energy, Inc. (CNP - Free Report) , TerraForm Power, Inc. and Ameren Corporation (AEE - Free Report) .
TerraForm Power, a Zacks Rank #2 stock, has seen estimates narrowing from a loss of 54 cents to a loss of 36 cents in the last 30 days for the current quarter.
Ameren Corp. has seen current-quarter estimates rise from 41 cents to 43 cents in the last 30 days. The stock carries a Zacks Rank #2.
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Pinnacle West Set to Grow on Investments, Economic Recovery
Despite Pinnacle West Capital Corporation (PNW - Free Report) missing earnings estimates in the fourth quarter of 2016, two analysts have raised estimates for the current quarter, while none have guided lower. This has not yet been reflected in the stock, as is evident from the company’s Zacks Rank #3 (Hold), which indicates expectations of in-line performance in the near term. However, the bullish analyst sentiment indicates that the stock’s growth story is intact and this stock might just be the one flying under the radar.
Pinnacle West steadily invests in the diversification and expansion of its asset base and will emphasize primarily on expanding its traditional generation, distribution and transmission operations. The Ocotillo modernization project and the Selective Catalytic Reduction Pollution Controls at the Four Corners Generating Plant are part of Pinnacle West’s modernization initiatives.
Pinnacle West projects capital expenditure of $1,337 million, $1,124 million and $994 million in 2017, 2018 and 2019, respectively. The company expects to invest heavily in infrastructure upgrades to serve its expanding customer base.
Moreover, Pinnacle West’s subsidiary, Arizona Public Service (APS), is the largest and longest-serving electric utility provider in Arizona. The state is witnessing a gradual economic recovery fueled by the rapidly developing Phoenix Metropolitan Area. In 2016, employment in Metro Phoenix increased 2.7% compared with 1.7% in the U.S.
Pinnacle West Capital Corporation Price
Pinnacle West Capital Corporation Price | Pinnacle West Capital Corporation Quote
APS witnessed retail customer growth of 1.4% in 2016 and expects annual customer growth in the range of 2–3% over the 2017–2019 period.
On the flip side, Pinnacle West, along with its subsidiaries, is subject to numerous environmental laws and regulations, and changes in, or liabilities under, existing or new laws or regulations. Cost of complying with new regulations could increase cost of operations while failure to meet the same might impact its business plans.
Key Picks
A few favorably placed stocks in the utility space include CenterPoint Energy, Inc. (CNP - Free Report) , TerraForm Power, Inc. and Ameren Corporation (AEE - Free Report) .
CenterPoint Energy’s estimates for the current quarter have increased from 34 cents to 36 cents in the last 30 days. The stock carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
TerraForm Power, a Zacks Rank #2 stock, has seen estimates narrowing from a loss of 54 cents to a loss of 36 cents in the last 30 days for the current quarter.
Ameren Corp. has seen current-quarter estimates rise from 41 cents to 43 cents in the last 30 days. The stock carries a Zacks Rank #2.
8 Stocks with Huge Profit Potential
Just released: Driverless Cars: Your Roadmap to Mega-Profits Today. In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>