Are Wall Street Analysts Predicting Duke Energy Stock…

Are Wall Street Analysts Predicting Duke Energy Stock Will Climb or Sink?

Headquartered in Charlotte, North Carolina, Duke Energy Corporation (DUK) is an energy holding company with a significant presence in the U.S. utility sector. With a market cap of $86.4 billion, Duke Energy specializes in generating, transmitting, and distributing electricity, as well as natural gas infrastructure, serving millions of customers across several states.

Shares of this leading energy company have underperformed the broader market over the last year. The stock has gained 27.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.7%. In 2024, DUK stock is up 14.7%, compared to the SPX, which is up 25.5% on a YTD basis.

Narrowing the focus, DUK has lagged behind the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained about 31.5% over the past year. Moreover, the ETF’s 23.7% returns on a YTD basis outweigh the stock's return.

Duke Energy's shares fell over 2% after the company reported Q3 earnings on Nov. 7. Its adjusted EPS declined 16.5% year over year to $1.62, missing consensus estimates of $1.73. However, total revenue rose 2% to $8.15 billion, slightly above the forecasted $8 billion. The company reaffirmed its 2024 adjusted EPS guidance of $5.85 to $6.10, expecting results toward the lower end, and projected a 5% to 7% annual growth rate through 2028.

For the current fiscal year, ending in December, analysts expect Duke Energy’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 20 analysts covering DUK stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” and nine “Holds.”

This configuration is more bullish than three months ago when eight analysts suggested a "Strong Buy."

On Nov. 11, RBC Capital analyst Shelby Tucker maintained a “Buy” rating on Duke Energy, with a price target of $135, which indicates a 21.3% upside from the current levels.

The mean price target of $124.31 represents an 11.7% upside from DUK’s current price levels. The Street-high price target of $139 suggests an upside potential of 24.9%.

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On the date of publication, Rashmi Kumari 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.

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