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

Zacks Equity Research

Duke Energy (DUK) closed at $95.43 in the latest trading session, marking a -0.67% move from the prior day. This change lagged the S&P 500's daily gain of 0.41%. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq gained 0.7%.

Prior to today's trading, shares of the electric utility had lost 0.14% over the past month. This has lagged the Utilities sector's gain of 0.62% and the S&P 500's gain of 2.04% in that time.

Investors will be hoping for strength from DUK as it approaches its next earnings release, which is expected to be November 8, 2019. In that report, analysts expect DUK to post earnings of $1.69 per share. This would mark year-over-year growth of 2.42%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.82 billion, up 2.83% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.98 per share and revenue of $25.01 billion, which would represent changes of +5.51% and +1.99%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DUK. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.13% 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 19.3. For comparison, its industry has an average Forward P/E of 21.11, which means DUK is trading at a discount to the group.

It is also worth noting that DUK currently has a PEG ratio of 3.96. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3.96 based on yesterday's closing prices.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% 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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