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

Zacks Equity Research

Duke Energy (DUK) closed at $93.94 in the latest trading session, marking a +0.23% move from the prior day. This move outpaced the S&P 500's daily gain of 0.03%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.04%.

Heading into today, shares of the electric utility had gained 4.72% over the past month, outpacing the Utilities sector's gain of 1.59% and the S&P 500's gain of 2.25% in that time.

Investors will be hoping for strength from DUK as it approaches its next earnings release. On that day, DUK is projected to report earnings of $1.73 per share, which would represent year-over-year growth of 4.85%. Our most recent consensus estimate is calling for quarterly revenue of $6.83 billion, up 3.06% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.99 per share and revenue of $24.95 billion, which would represent changes of +5.72% and +1.76%, respectively, from the prior year.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.19% higher within the past month. DUK currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that DUK has a Forward P/E ratio of 18.8 right now. Its industry sports an average Forward P/E of 20.95, so we one might conclude that DUK is trading at a discount comparatively.

Meanwhile, DUK's PEG ratio is currently 3.85. 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. DUK's industry had an average PEG ratio of 3.85 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 42% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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