Group 1 - The third-quarter 2025 investor letter from Aristotle Capital Boston, LLC reported that U.S. small/mid-cap equities had solid results, with the strategy delivering a return of 2.57% net of fees, underperforming the Russell 2500 Index's total return of 9.00% [1] - Pinnacle West Capital Corporation (NYSE:PNW) is highlighted as a key stock, with a one-month return of -3.53% and a 52-week gain of 2.22%, closing at $88.52 per share with a market capitalization of $10.572 billion on October 31, 2025 [2] - The company is described as a vertically integrated electric utility serving central Arizona, benefiting from population migration and industrial expansion in the Phoenix area, which is driving energy demand and capital investment opportunities [3] Group 2 - The regulatory environment in Arizona is improving, which is expected to reduce earnings volatility and accelerate cost recovery for Pinnacle West Capital Corporation [3] - Pinnacle West Capital Corporation is not among the 30 most popular stocks among hedge funds, with 41 hedge fund portfolios holding the stock at the end of the second quarter, an increase from 40 in the previous quarter [4] - While Pinnacle West Capital Corporation has investment potential, certain AI stocks are suggested to offer greater upside potential and less downside risk [4]

Core Insights - Arizona Public Service announced plans to construct the Desert Sun Power Plant, a new natural gas facility aimed at addressing the increasing energy demands in Arizona [1] Company Summary - Arizona Public Service is taking proactive steps to enhance its energy infrastructure by developing the Desert Sun Power Plant [1] Industry Summary - The construction of the Desert Sun Power Plant reflects the broader trend in the energy sector towards natural gas facilities to meet growing energy needs [1]

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Pinnacle West (PNW) due to lower revenues, with a focus on how actual results compare to estimates to influence stock price [1][2]. Earnings Expectations - Pinnacle West is expected to report quarterly earnings of $3.04 per share, reflecting a year-over-year decrease of 9.8%, and revenues of $1.73 billion, down 2.2% from the previous year [3]. - The earnings report is scheduled for November 3, and better-than-expected results could lead to a stock price increase, while missing estimates may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 122.22% over the last 30 days, indicating a significant reassessment by analysts [4]. - The Most Accurate Estimate for Pinnacle West matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, which complicates predictions of an earnings beat [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank of 1, 2, or 3 [10]. - Pinnacle West currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [12]. Historical Performance - In the last reported quarter, Pinnacle West met the expected earnings of $1.58 per share, resulting in no surprise [13]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Industry Comparison - Xcel Energy (XEL), another player in the Electric Power industry, is expected to post earnings of $1.31 per share, indicating a year-over-year increase of 4.8%, with revenues projected at $3.94 billion, up 8.1% [18]. - Xcel Energy's consensus EPS estimate has been revised down by 3.5% over the last 30 days, but it currently has an Earnings ESP of +0.38%, suggesting a likelihood of beating the consensus EPS estimate [19][20].

Core Viewpoint - Pinnacle West Capital has declared a quarterly dividend, indicating a commitment to returning value to shareholders and reflecting the company's financial health [1] Company Summary - The company has announced a quarterly dividend, which is a positive signal for investors regarding its profitability and cash flow management [1] Industry Summary - The declaration of dividends is a common practice in the utility sector, showcasing stability and consistent earnings, which are critical for investor confidence in this industry [1]

Core Insights - Pinnacle West Capital Corporation (PNW) is a utility holding company based in Phoenix, Arizona, providing retail and wholesale electric services, with a market cap of $11.1 billion [1] - The company is expected to announce its fiscal third-quarter earnings for 2025 on November 3, 2025 [1] Earnings Expectations - Analysts predict PNW will report a profit of $2.89 per share on a diluted basis, representing a 14.2% decline from $3.37 per share in the same quarter last year [2] - For the full fiscal year, EPS is expected to be $4.55, down 13.2% from $5.24 in fiscal 2024, but is projected to rise 3.1% year over year to $4.69 in fiscal 2026 [3] Stock Performance - PNW stock has underperformed the S&P 500 Index, which gained 15.1% over the past 52 weeks, with PNW shares only increasing by 5.5% during the same period [4] - The stock also lagged behind the Utilities Select Sector SPDR Fund, which saw an 11% gain in the same timeframe [4] Recent Financial Results - In Q2, PNW reported an EPS decline of 10.2% year over year to $1.58, with revenue at $1.4 billion, reflecting a 3.8% year-over-year increase [5] - The company anticipates full-year EPS to be between $4.40 and $4.60 [5] Analyst Ratings - The consensus opinion on PNW stock is moderately bullish, with a "Moderate Buy" rating overall; out of 16 analysts, five recommend a "Strong Buy," ten suggest a "Hold," and one advises a "Strong Sell" [6] - The average analyst price target for PNW is $97, indicating a potential upside of 5.2% from current levels [6]

Core Viewpoint - The comparison between Portland General Electric (POR) and Pinnacle West (PNW) indicates that POR currently offers better value for investors based on various financial metrics and rankings [1][3]. Valuation Metrics - Portland General Electric has a forward P/E ratio of 13.63, while Pinnacle West has a forward P/E of 20.42 [5]. - The PEG ratio for POR is 4.01, compared to PNW's PEG ratio of 9.63, suggesting that POR is more favorably valued in terms of expected earnings growth [5]. - The P/B ratio for POR is 1.25, whereas PNW has a P/B ratio of 1.63, indicating that POR is trading at a lower market value relative to its book value [6]. Zacks Rank and Value Grades - Portland General Electric holds a Zacks Rank of 2 (Buy), while Pinnacle West has a Zacks Rank of 3 (Hold), reflecting a stronger earnings outlook for POR [3]. - POR has been assigned a Value grade of A, while PNW has a Value grade of C, highlighting POR's superior valuation metrics [6]. Estimate Revisions - POR has experienced stronger estimate revision activity compared to PNW, which further supports the conclusion that POR is the more attractive option for value investors at this time [7].

Core Points - Pinnacle West Capital Corp. is scheduled to release its third-quarter financial results for 2025 before the U.S. financial markets open on November 3, 2025 [1] Company Summary - The financial results will provide insights into the company's performance and operational metrics for the third quarter of 2025 [1] - The timing of the release is aligned with standard practices in the industry for quarterly earnings announcements [1] Industry Context - The announcement reflects ongoing trends in the utility sector, where companies typically report quarterly results to inform investors and stakeholders [1] - The release of financial results is crucial for market analysis and investment decisions within the energy and utility industry [1]

Core Viewpoint - NorthWestern (NWE) is currently positioned as a more attractive investment option compared to Pinnacle West (PNW) for value investors, based on earnings estimate revisions and valuation metrics [3][7]. Valuation Metrics - NWE has a forward P/E ratio of 15.85, while PNW has a forward P/E of 19.02, indicating that NWE is relatively undervalued [5]. - The PEG ratio for NWE is 2.31, compared to PNW's PEG ratio of 8.97, suggesting that NWE offers better value when considering expected earnings growth [5]. - NWE's P/B ratio stands at 1.22, whereas PNW's P/B ratio is 1.51, further supporting NWE's valuation advantage [6]. Analyst Outlook - NWE holds a Zacks Rank of 2 (Buy), reflecting a positive earnings estimate revision activity, while PNW has a Zacks Rank of 4 (Sell), indicating a less favorable outlook [3][7]. - The Value grade for NWE is B, while PNW has a Value grade of C, reinforcing the conclusion that NWE is the superior choice for value investors [6].

Company Overview - Pinnacle West Capital Corporation (PNW) is headquartered in Phoenix, Arizona, and provides retail and wholesale electric services primarily in Arizona, with a market cap of $10.4 billion [1][2] - PNW is also engaged in real estate development activities in the western U.S. [1] Stock Performance - PNW's stock has declined 9.7% from its 52-week high of $96.50, reached on April 3, and has underperformed the Nasdaq Composite, which gained 13% over the same three-month period [3] - Year-to-date, PNW shares have risen 2.8%, but they have dipped 2.4% over the past 52 weeks, lagging behind the Nasdaq's YTD gains of 16.5% and 24.5% returns over the last year [4] - PNW has been trading below its 50-day and 200-day moving averages since late August, indicating a bearish trend [4] Financial Performance - In Q2, PNW reported an EPS of $1.58, a decline of 10.2% year-over-year, while revenue totaled $1.4 billion, reflecting a 3.8% year-over-year increase [5] - The company expects full-year EPS to be between $4.40 and $4.60 [5] Competitive Landscape - Evergy, Inc. (EVRG) has outperformed PNW, showing YTD gains of 19.8% and 19.5% returns over the past 52 weeks [5] Analyst Sentiment - Wall Street analysts maintain a "Moderate Buy" rating for PNW, with a consensus mean price target of $96.50, suggesting a potential upside of 10.7% from current price levels [6]

Core Insights - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] Group 1 - The service offers a Free Two-Week Trial for potential investors to explore top ideas across exclusive income-focused portfolios [1]