Yahoo Finance Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Pinnacle West (PNW)
Phoenix, AZ-based Pinnacle West Capital Corporation was incorporated in 1985. The company provides electricity services (wholesale or retail) in the state of Arizona through its subsidiaries. The company is involved in the generation, transmission and distribution of electricity from coal, nuclear, gas, oil and solar.
PNW sits at a Zacks Rank #2 (Buy), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Utility - Electric Power industry's P/E of 15.5X, shares of Pinnacle West are trading at a forward P/E of 16.1X. PNW also has a PEG Ratio of 2.1, a Price/Cash Flow ratio of 4.6X, and a Price/Sales ratio of 1.9X.
A company's earnings performance is important for value investors as well. For fiscal 2024, two analysts revised their earnings estimate higher in the last 60 days for PNW, while the Zacks Consensus Estimate has increased $0.02 to $4.76 per share. PNW also holds an average earnings surprise of 233.5%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding PNW to their portfolios.
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Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report
