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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Pinnacle West Capital

(

PNW

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Pinnacle West Capital as such a stock due to the following factors:

  • PNW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $77.4 million.
  • PNW has traded 400 shares today.
  • PNW is trading at a new lifetime high.

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More details on PNW:

Pinnacle West Capital Corporation, through its subsidiary, Arizona Public Service Company, provides retail and wholesale electric services primarily in the State of Arizona. The stock currently has a dividend yield of 3.7%. PNW has a PE ratio of 17.2. Currently there are 3 analysts that rate Pinnacle West Capital a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Recommends

The average volume for Pinnacle West Capital has been 917,800 shares per day over the past 30 days. Pinnacle West has a market cap of $7.1 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.67 and a short float of 3.2% with 3.07 days to cover. Shares are up 24.7% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Pinnacle West Capital as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 25.34% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PNW should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • PINNACLE WEST CAPITAL CORP has improved earnings per share by 7.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, PINNACLE WEST CAPITAL CORP increased its bottom line by earning $3.66 versus $3.50 in the prior year. This year, the market expects an improvement in earnings ($3.71 versus $3.66).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 1.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.76, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.27 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Electric Utilities industry average. The net income increased by 7.9% when compared to the same quarter one year prior, going from $226.16 million to $243.96 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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