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Pinnacle West (PNW) Gains From Investments, Clean Energy Goals
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Pinnacle West Capital Corporation’s (PNW - Free Report) planned investments in strengthening its infrastructure and a deepened focus on the increasing use of renewable sources to generate power will help it benefit from the expected surge in demand for clean energy. Also, the company’s efforts to reduce costs will drive its earnings.
The Zacks Consensus Estimate for 2021 earnings is pegged at $4.90 per share, indicating growth of 0.62% from the year-ago reported figure. Also, the consensus mark for current-year revenues stands at $3.66 billion, suggesting 2.09% growth from the prior-year reported number. Additionally, long-term (three-five years) earnings growth of the company is pegged at 3.37%.
In the past month, shares of this utility have gained 3.3%, outperforming the industry’s rise of 2.9%.
Tailwinds
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. After investing $1,262 million in 2020, it has plans to spend $1,500 million, annually, during the 2021-2023 time period. Moreover, the utility is trying to trim its expenses by implementing new policies, which in turn, will help keep the customer rates low as well as enhance its customer benefits and shareholder value.
Apart from growing its utility infrastructure, Pinnacle West continues to focus on expanding 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. It also 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 source.
Other players from the same industry are also making efforts to supply clean energy to their customers and enrich the reliability of services. Some of the companies including Duke Energy (DUK - Free Report) , DTE Energy (DTE - Free Report) and Xcel Energy Inc. (XEL - Free Report) have plans in place 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 From Investments, Clean Energy Goals
Pinnacle West Capital Corporation’s (PNW - Free Report) planned investments in strengthening its infrastructure and a deepened focus on the increasing use of renewable sources to generate power will help it benefit from the expected surge in demand for clean energy. Also, the company’s efforts to reduce costs will drive its earnings.
The Zacks Consensus Estimate for 2021 earnings is pegged at $4.90 per share, indicating growth of 0.62% from the year-ago reported figure. Also, the consensus mark for current-year revenues stands at $3.66 billion, suggesting 2.09% growth from the prior-year reported number. Additionally, long-term (three-five years) earnings growth of the company is pegged at 3.37%.
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 month, shares of this utility have gained 3.3%, outperforming the industry’s rise of 2.9%.
Tailwinds
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. After investing $1,262 million in 2020, it has plans to spend $1,500 million, annually, during the 2021-2023 time period. Moreover, the utility is trying to trim its expenses by implementing new policies, which in turn, will help keep the customer rates low as well as enhance its customer benefits and shareholder value.
Apart from growing its utility infrastructure, Pinnacle West continues to focus on expanding 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. It also 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 source.
Other players from the same industry are also making efforts to supply clean energy to their customers and enrich the reliability of services. Some of the companies including Duke Energy (DUK - Free Report) , DTE Energy (DTE - Free Report) and Xcel Energy Inc. (XEL - Free Report) have plans in place 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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