Pinnacle West Capital Corporation (PNW - Free Report) is expected to beat earnings estimates when it reports third-quarter results on Nov 8, before market open. In the last reported quarter, the utility company delivered a positive earnings surprise of 2.78%.
Here is What Our Quantitative Model Predicts
A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. Our model shows that Pinnacle West is likely to beat on earnings in the soon-to-be-reported quarter as it possesses both the components.
Earnings ESP: The company’s Earnings ESP is +2.00%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Pinnacle West carries a Zacks Rank #3, which when combined with a positive Earnings ESP, increases the possibility of an earnings beat. You can seethe complete list of today’s Zacks #1 Rank stocks here.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revision.
Factors to Consider
Pinnacle West is likely to gain from solid job and customer growth in Metro Phoenix areas, which is positively impacting the commercial and residential real estate markets. Improvement in commercial and housing unit demand is also positively impacting its utility services.
The third-quarter earnings season is expected to benefit from the above mentioned factors. The retail customer base is expected to grow in the range of 1.5-2.5%.
The Zacks Consensus Estimate for the third quarter is pegged at $2.75, which reflects growth of 11.8% from the year-ago reported quarter.
Other Stocks to Consider
In addition to Pinnacle West, investors may also consider the following companies from the same industry that also have the right combination of elements to beat earnings estimates in the to-be-reported quarter:
PNM Resources Inc. (PNM - Free Report) has an Earnings ESP of +1.2% and a Zacks Rank #1. The company is expected to report third-quarter 2018 earnings on Nov 6.
The AES Corporation (AES - Free Report) has an Earnings ESP of +1.43% and a Zacks Rank #2. The company is expected to report third-quarter 2018 numbers on Nov 6.
Southern Company (SO - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #2. The company is slated to report third-quarter 2018 results on Nov 7.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>