PNW

In a comparison of two utility stocks, Avista (AVA) emerges as the superior value option compared to Pinnacle West (PNW). Avista holds a Zacks Rank of #2 (Buy) with improving earnings outlook, while Pinnacle West has a #3 (Hold) ranking. Avista's valuation metrics are more attractive, featuring a forward P/E of 13.98 versus PNW's 21.47, a lower PEG ratio of 3.38 versus 3.70, and a P/B ratio of 1.08 compared to PNW's 1.74.

Pinnacle West Capital (PNW) is capitalizing on rising electricity demand in its service territory, with Q2 2026 customer growth of 2.1% and weather-normalized sales up 5.6%. The company plans $7.95B in infrastructure investments through 2028 and forecasts 5-7% long-term EPS growth, driven by data centers and industrial customers. Similar trends are benefiting other utilities like Alliant Energy and PPL Corporation, which are seeing significant demand from large commercial customers and data center pipelines.

IDACORP (IDA) is experiencing strong growth driven by rising electricity demand across its service territory. Idaho Power added 15,000 customers with 2.3% annual growth, and industrial revenues increased 17% in Q2 2026.

The company expects retail electricity sales to grow 8.3% annually and peak demand to rise 5.1% annually over five years, supported by major customers like Micron and Meta. IDA plans capital expenditures of $1.3-$1.5 billion in 2026 and $7.1 billion through 2030.