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Duke Energy Hits 52-Week High: What's Driving the Stock?

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Duke Energy Corp. (DUK - Free Report) touched a new 52-week high of $122.50 on Mar. 31. It closed the trading session at $121.97, up 2.1% from that recorded on Mar. 28. This increase was fueled by the approval from the Nuclear Regulatory Commission (“NRC”) to extend Oconee Nuclear Station’s operating licenses by 20 years.

DUK stock has gained 4.5% in the past six months against the Zacks Utility- Electric Power industry’s decline of 2.4%, the Zacks Utilities sector’s fall of 3.4% and the Zacks S&P 500 composite’s deterioration of 2.1%.
 

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Duke Energy currently carries a Zacks Rank #4 (Sell). It has benefited from strategic investments to expand its existing infrastructure and cater to the increasing demand, as well as its focus on renewable energy.

What's Driving DUK Stock’s Performance?

DUK’s largest nuclear plant receives approval to extend operations: On March 31, 2025, the U.S. NRC has renewed the operating licenses for Duke Energy’s Oconee Nuclear Station for an additional 20 years. Nuclear generation is a vital part of Duke Energy’s generation portfolio and the only clean energy source that is available 24 hours a day.

Oconee, based in Seneca, SC, will be able to operate through 2053 and 2054, thanks to the approval of its second, or subsequent renewed licenses. This supports the company's "all of the above" strategy, which aims to provide a path to cleaner energy while maintaining customer affordability and reliability as regional electricity demand continues to rise.

In 2024, its six plants helped meet more than 50% of Carolinas customers' electricity and more than 96% of the company's clean energy requirements. Maintaining safe and reliable operations is Duke Energy’s primary focus, and the company invests heavily in maintenance and upgrades at its nuclear facilities to ensure they can operate through midcentury.

Data Centers as a Major Driver: Data centers are a significant contributor to the growing electricity demand, with Duke Energy projecting that they will account for 25% of new customer load by 2028. Duke Energy is experiencing an increase in electricity demand, driven by factors like population growth in the Southeast, the expansion of data centers and the growth of advanced manufacturing.

Duke Energy projects that load growth from 2027 to 2029 will jump to 3-4% from 1.5-2% within the next two years. To cater to the rising demand, the company has increased its five-year capital expenditure plan by 12% to $83 billion.

Focus on Renewable Energy: Duke Energy has set ambitious goals to achieve net-zero carbon emissions from electricity generation by 2050 and net-zero methane emissions from its natural gas business by 2030. It is advancing solar procurement in the Carolinas and Florida.  The company aims to have 1.5 gigawatts (GW) of solar capacity in service annually, starting in 2027, in the Carolinas.  It also targets 900 megawatts (MW) of solar additions in Florida MYRP during 2025-2027.

In order to supply dispatchable power to its expanding regions, DUK is incorporating natural gas. By the end of 2029, it anticipates that 5 GW of new natural gas will be operational. The company should be able to strengthen its position in the growing renewable energy industry with such solid strategies for maximizing renewable capacity.

Other Utility Stocks Trading at 52-Week High

Some other companies from the same industry, like American Electric Power (AEP - Free Report) , Consolidated Edison (ED - Free Report) and Exelon Corp. (EXC - Free Report) , are also currently trading at 52-week highs.

AEP’s shares have risen 18.8% in the past three months compared with the industry’s 4.9% growth. It touched a new 52-week high of $109.76 on March 31. The stock closed the trading session at $109.27.

The Zacks Consensus Estimate for AEP’s 2025 EPS indicates year-over-year growth of 4.5%. AEP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ED’s shares have risen 24.2% in the past three months. It touched a new 52-week high of $111.11 on March 31. The stock closed the trading session at $110.59.

The Zacks Consensus Estimate for ED’s 2025 EPS indicates a year-over-year increase of 4.4%. The company currently carries a Zacks Rank #3.

EXC’s shares have risen 22.4% in the past three months. It touched a new 52-week high of $46.22 on March 31. The stock closed the trading session at $46.08.

The Zacks Consensus Estimate for EXC’s 2025 EPS indicates a year-over-year increase of 6%. The company currently carries a Zacks Rank #2 (Buy).

 

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