Pinnacle West Capital Corporation (PNW), headquartered in Phoenix, Arizona, provides retail and wholesale electric services to its customers. Valued at $10.6 billion by market cap, the company offers retail and wholesale electric service to most of the State of Arizona. PNW is also involved in real estate development activities in the western U.S.
Shares of this utility holding company have underperformed the broader market over the past year. PNW has declined 3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 13.7%. In 2025, PNW’s stock rose 5.2%, compared to the SPX’s 13.4% rise on a YTD basis.
Narrowing the focus, PNW’s underperformance is also apparent compared to the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained about 13% over the past year. Moreover, the ETF’s 18.3% gains on a YTD basis outshine the stock’s single-digit returns over the same time frame.
On Nov. 3, PNW shares closed up more than 1% after reporting its Q3 results. Its revenue stood at $1.8 billion, up 2.9% year-over-year. The company’s EPS increased marginally from the year-ago quarter to $3.39.
For the current fiscal year, ending in December, analysts expect PNW’s EPS to decline 5% to $4.98 on a diluted basis. The company’s earnings surprise history is mixed. It beat or matched the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 18 analysts covering PNW stock, the consensus is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, and 13 “Holds.”
This configuration is less bearish than a month ago, with one analyst suggesting a “Strong Sell.”
On Nov. 12, Shelby Tucker from TD Cowen maintained a “Hold” rating on PNW with a price target of $97, implying a potential upside of 8.8% from current levels.
The mean price target of $97.50 represents a 9.4% premium to PNW’s current price levels. The Street-high price target of $115 suggests a notable upside potential of 29%.
On the date of publication, Neha Panjwani 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. For more information please view the Barchart Disclosure Policy here.
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