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Duke Energy (DUK) Gains But Lags Market: What You Should Know

·3 min read

Duke Energy (DUK) closed the most recent trading day at $109.88, moving +0.62% from the previous trading session. This move lagged the S&P 500's daily gain of 1.53%. At the same time, the Dow added 1.19%, and the tech-heavy Nasdaq gained 0.14%.

Prior to today's trading, shares of the electric utility had gained 0.64% over the past month. This has lagged the Utilities sector's gain of 1.07% and outpaced the S&P 500's loss of 3.1% in that time.

Duke Energy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.85, down 1.6% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.19 billion, up 3.38% from the prior-year quarter.

DUK's full-year Zacks Consensus Estimates are calling for earnings of $5.45 per share and revenue of $27.43 billion. These results would represent year-over-year changes of +4.01% and +9.29%, respectively.

It is also important to note the recent changes to analyst estimates for Duke Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% lower. Duke Energy is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Duke Energy currently has a Forward P/E ratio of 20.04. For comparison, its industry has an average Forward P/E of 19.87, which means Duke Energy is trading at a premium to the group.

It is also worth noting that DUK currently has a PEG ratio of 3.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DUK's industry had an average PEG ratio of 3.33 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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