Pinnacle West Capital Corporation (PNW): Today's Featured Utilities Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Pinnacle West Capital Corporation ( PNW) pushed the Utilities sector lower today making it today's featured Utilities laggard. The sector as a whole closed the day up 0.7%. By the end of trading, Pinnacle West Capital Corporation fell $1.20 (-2.1%) to $56.20 on heavy volume. Throughout the day, 3,098,463 shares of Pinnacle West Capital Corporation exchanged hands as compared to its average daily volume of 714,100 shares. The stock ranged in price between $56.01-$57.20 after having opened the day at $57.00 as compared to the previous trading day's close of $57.40. Other companies within the Utilities sector that declined today were: U.S. Geothermal ( HTM), down 3.3%, CPFL Energy ( CPL), down 3.1%, Atlantic Power Corporation ( AT), down 3.0% and Cadiz ( CDZI), down 2.9%.
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Pinnacle West Capital Corporation, through its subsidiary, Arizona Public Service Company, provides retail and wholesale electric services primarily in the State of Arizona. Pinnacle West Capital Corporation has a market cap of $6.3 billion and is part of the utilities industry. The company has a P/E ratio of 15.2, below the S&P 500 P/E ratio of 17.7. Shares are up 12.6% year to date as of the close of trading on Monday. Currently there is 1 analyst that rates Pinnacle West Capital Corporation a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Pinnacle West Capital Corporation as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, American DG Energy ( ADGE), down 8.6%, Centrais Eletricas Brasileiras ( EBR), down 3.6%, Niska Gas Storage Partners ( NKA), down 2.6% and York Water Company ( YORW), down 2.5% , were all gainers within the utilities sector with PPL ( PPL) being today's featured utilities sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the utilities sector could consider Utilities Select Sector SPDR ( XLU) while those bearish on the utilities sector could consider ProShares UltraShort Utilities ( SDP).

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