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Why Duke Energy (DUK) Dipped More Than Broader Market Today

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Duke Energy (DUK - Free Report) closed at $107.12 in the latest trading session, marking a -0.39% move from the prior day. This move lagged the S&P 500's daily loss of 0.16%. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw a decrease of 0.06%.

The electric utility's stock has climbed by 5.94% in the past month, exceeding the Utilities sector's gain of 0.93% and the S&P 500's gain of 1.96%.

The investment community will be paying close attention to the earnings performance of Duke Energy in its upcoming release. The company is slated to reveal its earnings on August 6, 2024. The company's earnings per share (EPS) are projected to be $0.95, reflecting a 4.4% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $6.64 billion, showing a 0.91% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.97 per share and a revenue of $29.99 billion, signifying shifts of +7.37% and +3.19%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Duke Energy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Duke Energy is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, Duke Energy currently has a Forward P/E ratio of 18.02. This denotes a premium relative to the industry's average Forward P/E of 15.78.

It is also worth noting that DUK currently has a PEG ratio of 2.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Utility - Electric Power was holding an average PEG ratio of 2.61 at yesterday's closing price.

The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 30% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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