Pinnacle West(US:PNW) ZACKS·2026-01-23 18:01Core Viewpoint - Pinnacle West (PNW) has been upgraded 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 Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, driven by institutional investors who adjust their valuations based on these estimates [4]. - For Pinnacle West, the increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to higher stock prices as investors respond positively [5]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Pinnacle West's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Pinnacle West is projected to earn $4.78 per share, consistent with the previous year's figure, while the Zacks Consensus Estimate has increased by 0.8% over the past three months [8].