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

Zacks Equity Research

In the latest trading session, Duke Energy (DUK) closed at $87.59, marking a +0.06% move from the previous day. The stock lagged the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 1.66%.

Prior to today's trading, shares of the electric utility had gained 10.42% over the past month. This has outpaced the Utilities sector's gain of 1.14% and the S&P 500's gain of 3.15% in that time.

DUK will be looking to display strength as it nears its next earnings release, which is expected to be May 12, 2020. The company is expected to report EPS of $1.28, up 3.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.32 billion, up 2.58% from the year-ago period.

DUK's full-year Zacks Consensus Estimates are calling for earnings of $5.12 per share and revenue of $25.46 billion. These results would represent year-over-year changes of +1.19% and +1.52%, respectively.

Any recent changes to analyst estimates for DUK should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 1.65% lower. DUK is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note DUK's current valuation metrics, including its Forward P/E ratio of 17.11. For comparison, its industry has an average Forward P/E of 17.46, which means DUK is trading at a discount to the group.

We can also see that DUK currently has a PEG ratio of 3.69. 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 3.72 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 56, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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