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Pinnacle West (PNW) Gains on Investments, Sets Clean Energy Goals
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Pinnacle West Capital Corporation’s (PNW - Free Report) focus on increasing electricity generation from renewable sources and its systematic investments in strengthening its infrastructure position it well to benefit from the expected increase in demand from new commercial ventures in its service territories. Also, the company’s cost-management initiatives amid the ongoing pandemic will aid its earnings.
The Zacks Consensus Estimate for 2020 earnings is pegged at $5.09 per share, indicating growth of 6.71% from the year-ago reported figure. Also, the consensus mark for current-year revenues stands at $3.56 billion, suggesting 2.55% growth from the prior-year reported number. Additionally, long-term (three-five years) earnings growth of the company is pegged at 3.59%.
In the past six months, shares of this utility have gained 7.3%, outperforming the industry’s rise of 3.6%.
What’s Driving the Stock?
Pinnacle West’s investments in clean power generation, and transmission & distribution lines will help it expand its customer base with more responsibility and better efficiency. The company projects capital expenditures of $1,263 million, $1,650 million and $1,725 million in 2020, 2021 and 2022, respectively. Moreover, through the implementation of new policies, the utility is reducing its Operations and Maintenance expenses, which will help keep customer rates low as well as enhance its customer benefits and shareholder value.
Apart from growing its utility infrastructure, Pinnacle West continues focusing on increasing its generation from renewable sources. Under the Integrated Resource Plan, the company expects to add 2,894 megawatt (MW) of clean energy to its portfolio. Also, it plans to retire 1,400 MW of coal-fired generation. Moreover, the company announced its goal to deliver 100% clean carbon-free electricity to customers by 2050, which includes a near-term target of achieving a resource mix that is 65% clean energy by 2030 with 45% coming from renewable energy.
Likewise, other electric utilities are also making efforts to supply clean and reliable energy to its customers. Some of the companies, namely Duke Energy (DUK - Free Report) , DTE Energy (DTE - Free Report) and Xcel Energy Inc. (XEL - Free Report) are planning to provide absolute clean energy by 2050.
Headwinds
However, Pinnacle West’s progress could be hindered by fluctuations in commodity prices, stringent environmental regulations and any unplanned outages in nuclear generation facilities.
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Pinnacle West (PNW) Gains on Investments, Sets Clean Energy Goals
Pinnacle West Capital Corporation’s (PNW - Free Report) focus on increasing electricity generation from renewable sources and its systematic investments in strengthening its infrastructure position it well to benefit from the expected increase in demand from new commercial ventures in its service territories. Also, the company’s cost-management initiatives amid the ongoing pandemic will aid its earnings.
The Zacks Consensus Estimate for 2020 earnings is pegged at $5.09 per share, indicating growth of 6.71% from the year-ago reported figure. Also, the consensus mark for current-year revenues stands at $3.56 billion, suggesting 2.55% growth from the prior-year reported number. Additionally, long-term (three-five years) earnings growth of the company is pegged at 3.59%.
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past six months, shares of this utility have gained 7.3%, outperforming the industry’s rise of 3.6%.
What’s Driving the Stock?
Pinnacle West’s investments in clean power generation, and transmission & distribution lines will help it expand its customer base with more responsibility and better efficiency. The company projects capital expenditures of $1,263 million, $1,650 million and $1,725 million in 2020, 2021 and 2022, respectively. Moreover, through the implementation of new policies, the utility is reducing its Operations and Maintenance expenses, which will help keep customer rates low as well as enhance its customer benefits and shareholder value.
Apart from growing its utility infrastructure, Pinnacle West continues focusing on increasing its generation from renewable sources. Under the Integrated Resource Plan, the company expects to add 2,894 megawatt (MW) of clean energy to its portfolio. Also, it plans to retire 1,400 MW of coal-fired generation. Moreover, the company announced its goal to deliver 100% clean carbon-free electricity to customers by 2050, which includes a near-term target of achieving a resource mix that is 65% clean energy by 2030 with 45% coming from renewable energy.
Likewise, other electric utilities are also making efforts to supply clean and reliable energy to its customers. Some of the companies, namely Duke Energy (DUK - Free Report) , DTE Energy (DTE - Free Report) and Xcel Energy Inc. (XEL - Free Report) are planning to provide absolute clean energy by 2050.
Headwinds
However, Pinnacle West’s progress could be hindered by fluctuations in commodity prices, stringent environmental regulations and any unplanned outages in nuclear generation facilities.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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