Is Avista Corporation (AVA) an Attractively Priced Stock?

Palm Valley Capital Management, an investment management firm, has released the “Palm Valley Capital Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, Palm Valley Capital Fund appreciated 2.35% compared to a 9.11% gain for the S&P SmallCap 600 and a 7.99% rise in the Morningstar Small Cap Total Return Index. At the start of the quarter, the Fund invested 73.5% in cash equivalents, increasing slightly to 74.1% by the end of the quarter. Small-cap stocks performed ahead of large caps during the period, with the anticipation of Fed easing and reduced concerns about the impact of tariffs on corporate profits. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Palm Valley Capital Fund highlighted stocks such as Avista Corporation (NYSE:AVA). Avista Corporation (NYSE:AVA) is a US-based electric and natural gas utility company. The one-month return of Avista Corporation (NYSE:AVA) was 3.17%, and its shares lost 0.08% of their value over the last 52 weeks. On October 7, 2025, Avista Corporation (NYSE:AVA) stock closed at $37.38 per share, with a market capitalization of $3.032 billion.

Palm Valley Capital Fund stated the following regarding Avista Corporation (NYSE:AVA) in its third quarter 2025 investor letter:

“We also bought a small position in Avista Corporation (NYSE:AVA) during the quarter. Founded in 1889, Avista is an electric and natural gas utility operating in Washington, Oregon, Idaho, and Alaska. We repurchased its shares after a weaker than expected earnings report and a decline in its stock price. While the company has suffered impairments on some of its clean energy investments, its core utility business continues to perform well and makes up most of our valuation. We believe successful rate cases in its regulated utility business will create earnings clarity and growth in 2025 and 2026. In our opinion, Avista is currently attractively priced, trading at 14x expected earnings, 1.2x tangible book value, and offers a 5.2% dividend.”

Avista Corporation (NYSE:AVA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 27 hedge fund portfolios held Avista Corporation (NYSE:AVA) at the end of the second quarter, compared to 30 in the previous quarter. While we acknowledge the risk and potential of Avista Corporation (NYSE:AVA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Avista Corporation (NYSE:AVA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Avista Corporation (NYSE:AVA) and shared the list of best electric utility stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.