Here's Why Pinnacle West (PNW) is a Strong Value Stock

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies attractive and discounted stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Score emphasizes a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Score focuses on trends in stock prices and earnings outlooks, using factors like one-week price change and monthly earnings estimate changes to identify high-momentum stocks [5] VGM Score - The VGM Score combines the three Style Scores to rate stocks based on their overall attractiveness in value, growth, and momentum, serving as a strong indicator alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] Stock to Watch: Pinnacle West Capital Corporation - Pinnacle West Capital Corporation, based in Phoenix, AZ, provides electricity services in Arizona and is involved in electricity generation, transmission, and distribution [11] - The company holds a 2 (Buy) rating on the Zacks Rank and has a VGM Score of B, indicating strong potential [11] - Pinnacle West has a Value Style Score of B, supported by a forward P/E ratio of 18.47, making it attractive to value investors [12] - The Zacks Consensus Estimate for Pinnacle West's fiscal 2024 earnings has increased by $0.23 to $5.13 per share, with five analysts revising their estimates upwards in the last 60 days, and the company has an average earnings surprise of 246.2% [12]