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Duke Energy (DUK) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Duke Energy (DUK) closed the most recent trading day at $81.78, moving +1.83% from the previous trading session. This change outpaced the S&P 500's 1.69% gain on the day. Meanwhile, the Dow gained 1.91%, and the Nasdaq, a tech-heavy index, added 1.58%.

Investors will be hoping for strength from DUK as it approaches its next earnings release, which is expected to be May 12, 2020. In that report, analysts expect DUK to post earnings of $1.21 per share. This would mark a year-over-year decline of 2.42%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.27 billion, up 1.7% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.10 per share and revenue of $25.23 billion. These totals would mark changes of +0.79% and +0.6%, respectively, from last year.

Any recent changes to analyst estimates for DUK should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.89% lower within the past month. DUK is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note DUK's current valuation metrics, including its Forward P/E ratio of 15.75. This represents a discount compared to its industry's average Forward P/E of 16.73.

It is also worth noting that DUK currently has a PEG ratio of 3.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Utility - Electric Power industry currently had an average PEG ratio of 3.29 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 71, which puts it in the top 28% 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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