Back to top

Image: Bigstock

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

Read MoreHide Full Article

Duke Energy (DUK - Free Report) closed the latest trading day at $107.82, indicating a +0.07% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 0.22%. Elsewhere, the Dow saw a downswing of 0.36%, while the tech-heavy Nasdaq depreciated by 0.16%.

The electric utility's stock has dropped by 4.89% in the past month, exceeding the Utilities sector's loss of 7.45% and lagging the S&P 500's loss of 2.36%.

The investment community will be closely monitoring the performance of Duke Energy in its forthcoming earnings report. The company is expected to report EPS of $1.69, up 11.92% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.73 billion, up 7.23% from the year-ago period.

It's also important for investors to be aware of any recent modifications to analyst estimates for Duke Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Duke Energy holds a Zacks Rank of #3 (Hold).

In terms of valuation, Duke Energy is presently being traded at a Forward P/E ratio of 16.98. This expresses a premium compared to the average Forward P/E of 15.92 of its industry.

It's also important to note that DUK currently trades at a PEG ratio of 2.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. DUK's industry had an average PEG ratio of 2.51 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 34% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Duke Energy Corporation (DUK) - free report >>

Published in