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Duke Energy (DUK) Stock Sinks As Market Gains: Here's Why

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Duke Energy (DUK - Free Report) ended the recent trading session at $117.06, demonstrating a -0.13% swing from the preceding day's closing price. This change lagged the S&P 500's 0.27% gain on the day. Elsewhere, the Dow saw an upswing of 0.65%, while the tech-heavy Nasdaq appreciated by 0.26%.

The electric utility's stock has climbed by 1.07% in the past month, exceeding the Utilities sector's loss of 2.82% and lagging the S&P 500's gain of 2%.

Market participants will be closely following the financial results of Duke Energy in its upcoming release. The company plans to announce its earnings on November 7, 2024. The company is forecasted to report an EPS of $1.73, showcasing a 10.82% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $8.08 billion, showing a 1.08% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.98 per share and revenue of $30.37 billion, which would represent changes of +7.55% and +4.5%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Duke Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Currently, Duke Energy is carrying a Zacks Rank of #2 (Buy).

In terms of valuation, Duke Energy is currently trading at a Forward P/E ratio of 19.61. This represents a premium compared to its industry's average Forward P/E of 17.24.

One should further note that DUK currently holds a PEG ratio of 3.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Utility - Electric Power industry had an average PEG ratio of 2.75 as trading concluded yesterday.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% 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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