Duke Energy Corporation (DUK), headquartered in Charlotte, North Carolina, is one of the largest energy holding companies in the U.S. The company’s electric utilities serve 8.4 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky. Valued at $85.67 billion by market cap, the company collectively owns approximately 54,800 megawatts of energy capacity. Its natural gas utilities serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio, and Kentucky. DUK is also investing in electric grid upgrades and cleaner generation.
Shares of this leading energy company have outperformed the broader market considerably over the past year. DUK has gained 26.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 17%. In 2024, DUK stock is up 16.4%, compared to SPX’s 9.9% returns on a YTD basis.
Narrowing the focus, DUK has outperformed the S&P 500 Utilities Sector SPDR (XLU). The exchange-traded fund has gained about 13.9% over the past year. Moreover, the stock’s YTD gains outshine the ETF’s 15.1% returns.
On Aug. 6, DUK shares rose more than 1% after the company reported its Q2 results. Its adjusted earnings came in at $921 million, and adjusted EPS was $1.18, beating consensus estimates of $1.01. The company’s revenue of $7.17 billion surpassed Wall Street expectations of $6.78 billion. DUK reaffirmed its 2024 adjusted EPS of between $5.85 and $6.10 and long-term adjusted EPS growth rate of 5% to 7% through 2028 off the 2024 midpoint of $5.98.
For the current fiscal year, ending in December, analysts expect DUK’s EPS to grow 7.4% to $5.97 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 17 analysts covering DUK stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and eight “Holds.”
This configuration has been consistent over the past three months.
Recently, KeyBanc analyst Sophie Karp kept an “Overweight” rating on DUK stock and raised the price target from $112 to $114, implying a marginal potential upside from current levels.
The mean price target of $107.80 represents a 4.5% downside to DUK’s current price levels. The Street-high price target of $120 suggests an upside potential of 6.3%.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
