Allentown, Pennsylvania-based PPL Corporation (PPL) operates as an energy company. It provides electricity and natural gas to over 3.6 million customers in the United States. With a market cap of $25 billion, PPL operates through Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated segments.
The utility major has significantly outperformed the broader market over the past year. PPL stock has soared 32.8% over the past 52 weeks and 5.1% on a YTD basis, outpacing the S&P 500 Index’s ($SPX) 22.8% surge over the past year and 3.4% gains in 2025.
Zooming in further, PPL has also outpaced the sector-focused Utilities Select Sector SPDR Fund’s (XLU) 29.6% surge over the past year and 3.5% returns on a YTD basis.
However, PPL stock dropped 3.1% after the release of its mixed Q3 results on Nov. 1. Its electricity sales to its customers in Pennsylvania and Kentucky grew 1.5% year-over-year to 17,738-gigawatt hours, contributing to a modest 1.1% year-over-year growth in operating revenues to $2.1 billion, which missed Wall Street’s expectations by 2.1%. Meanwhile, due to an increase in interest, fuel and other operating expenses, its adjusted EPS dropped 2.3% compared to the year-ago quarter to $0.42. Nevertheless, its earnings exceeded analysts’ projections by 7.7%.
On a more positive note, PPL reaffirmed its EPS and dividend to grow between 6% to 8% through 2027. And is on track to invest over $3 billion during the year on infrastructure improvements to make the grid more resilient to future storms.
The company is set to announce its fiscal 2024 results in the upcoming week, analysts expect its earnings to grow 7.5% year-over-year to $1.72 per share. Furthermore, it has a robust earnings surprise history. PPL has surpassed the Street’s bottom-line expectations in each of the past four quarters.
Among the 16 analysts covering the PPL stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy,” two “Moderate Buy,” four “Hold” ratings.
This configuration is slightly more bullish than two months ago when eight analysts gave “Strong Buy” recommendations.
On Dec. 17, Jefferies analyst Paul Zimbardo maintained a “Buy” rating on PPL, while lowering the price target to $38, indicating an 11.4% upside potential from current price levels.
Meanwhile, PPL’s mean price target of $35.94 represents a 5.4% premium to current price levels.
