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Here's Why Duke Energy (DUK) Fell More Than Broader Market

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Duke Energy (DUK - Free Report) closed the latest trading day at $119.89, indicating a -0.72% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.18% for the day. Elsewhere, the Dow saw a downswing of 0.8%, while the tech-heavy Nasdaq appreciated by 0.27%.

The electric utility's stock has climbed by 3.77% in the past month, exceeding the Utilities sector's loss of 0.14% and lagging the S&P 500's gain of 4.46%.

Investors will be eagerly watching for the performance of Duke Energy in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 7, 2024. On that day, Duke Energy is projected to report earnings of $1.85 per share, which would represent a year-over-year decline of 4.64%. Meanwhile, the latest consensus estimate predicts the revenue to be $8.17 billion, indicating a 2.14% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.97 per share and revenue of $30.42 billion. These totals would mark changes of +7.37% and +4.7%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Duke Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 0.05% rise in the Zacks Consensus EPS estimate. At present, Duke Energy boasts a Zacks Rank of #2 (Buy).

In terms of valuation, Duke Energy is presently being traded at a Forward P/E ratio of 20.22. This expresses a premium compared to the average Forward P/E of 17.6 of its industry.

One should further note that DUK currently holds a PEG ratio of 3.32. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.81 based on yesterday's closing prices.

The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 61, finds itself in the top 25% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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