Pinnacle West(PNW) ZACKS·2024-12-27 18:00Core Viewpoint - Pinnacle West (PNW) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that revisions in earnings estimates are a powerful indicator of future stock performance [4][6]. - For Pinnacle West, the recent increase in earnings estimates reflects an improvement in the company's underlying business, which is expected to drive the stock price higher [5][8]. Earnings Estimate Revisions - Pinnacle West is projected to earn $5.14 per share for the fiscal year ending December 2024, marking a year-over-year increase of 16.6% [8]. - Over the past three months, the Zacks Consensus Estimate for Pinnacle West has risen by 7.6%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for superior returns [9][10]. - Pinnacle West's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for near-term price movement [11].