Duke Energy Corporation (DUK), with a market cap of $89.2 billion, is one of the largest energy holding companies. Headquartered in Charlotte, North Carolina, it operates a diverse energy portfolio that includes natural gas, nuclear, and renewable energy sources such as wind and solar. It generates electricity through a mix of coal, hydroelectric, natural gas, oil, renewables, and nuclear fuel, serving millions of customers across several states.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and DUK fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the regulated electric utilities industry. The company focuses on grid modernization, clean energy investments, and sustainability initiatives, aiming for net-zero carbon emissions by 2050. With regulated utility operations providing stable revenue and a strong dividend history, Duke Energy remains a key player in the energy sector.
This utility giant is currently trading 5.3% below its 52-week high of $121.25, achieved on Oct. 21, 2024. It has gained 2.4% over the past three months, outpacing the broader S&P 500 Index’s ($SPX) 5.8% downtick over the same time frame.
In the longer term, DUK has soared 22.1% over the past 52 weeks, outperforming SPX’s 12.4% return. Moreover, on a YTD basis, shares of DUK are up 6.6%, compared to SPX’s 2.4% decline over the same time frame.
To confirm its bullish trend, DUK has been trading above its 200-day moving average since the past year, with some fluctuations, and has remained above its 50-day moving average since late January.
On Feb. 13, shares of DUK plunged 2.1% following its Q4 earnings release, as the company delivered revenues of $7.4 billion, which fell short of the forecasted figure by a notable 4.7%. However, on a positive note, its adjusted earnings grew 9.9% year-over-year to $1.66 per share and exceeded Wall Street’s expectations by 3.1%. Lower operating expenses, driven by reduced fuel expenses used in electric generation and purchased power, primarily led to its robust bottom-line growth.
Looking ahead, Duke Energy introduced its 2025 guidance, projecting adjusted EPS between $6.17 and $6.42. Moreover, the company projects long-term adjusted EPS growth of 5% to 7% through 2029.
DUK has slightly underperformed its rival, American Electric Power Company, Inc.’s (AEP) nearly 22.3% gain over the past 52 weeks and has also lagged behind AEP’s 11.2% return on a YTD basis.
Given DUK’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 21 analysts covering it, and the mean price target of $123.88 suggests a modest 7.9% premium to its current levels.
