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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 $61.2 million.
  • PNW has traded 10,748 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. It generates, transmits, and distributes electricity using coal, nuclear, gas, oil, and solar resources. The stock currently has a dividend yield of 3.3%. PNW has a PE ratio of 2. Currently there is 1 analyst that rates Pinnacle West Capital a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for Pinnacle West Capital has been 755,000 shares per day over the past 30 days. Pinnacle West has a market cap of $8.4 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.40 and a short float of 2.6% with 3.98 days to cover. Shares are up 19.7% year-to-date as of the close of trading on Thursday.

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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 revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and good cash flow from operations. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • PNW's revenue growth has slightly outpaced the industry average of 7.6%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.89, 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 0.14 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electric Utilities industry and the overall market on the basis of return on equity, PINNACLE WEST CAPITAL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • PINNACLE WEST CAPITAL CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PINNACLE WEST CAPITAL CORP increased its bottom line by earning $3.91 versus $3.58 in the prior year. This year, the market expects an improvement in earnings ($4.00 versus $3.91).

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