Based in Charlotte, North Carolina, Duke Energy Corporation (DUK) is an electric power and natural gas holding company. Valued at a market cap of $90.3 billion, the company operates through two segments: Electric Utilities and Infrastructure (EU&I), and Gas Utilities and Infrastructure (GU&I) and also operates a growing renewable energy portfolio.
Companies worth more than $10 billion or more are generally described as “large-cap stocks,” and Duke Energy fits right into that. DUK distinguishes itself as one of the largest energy holding companies in the United States, serving 8.2 million electricity customers and 1.6 million natural gas customers. It collectively owns approximately 54,800 megawatts of energy capacity.
Despite a slight decline from its 52-week high of $118.08, shares of this energy company have gained 13.5% over the past three months, surpassing the Utilities Select Sector SPDR Fund’s (XLU) 7.9% return over the same time frame.
However, longer term, DUK stock is up 20.7% on a YTD basis, slightly lagging behind XLU’s 21.7% gains. But, shares of DUK have rallied 35.2% over the past 52 weeks, outpacing XLU’s 25% return over the same time frame.
DUK has been trading above its 200-day moving average since March and has remained mostly above its 50-day moving average since late April, indicating a bullish trend.
DUK has gained 1.7% after its Q2 earnings release on Aug. 6, which surpassed Wall Street’s top and bottom line estimates. The better-than-expected performance was driven by growth in its Electric Utilities and Infrastructure unit, which was fueled by higher rates, a rising customer base, and improved weather.
However, DUK has lagged behind its rival, American Electric Power Company, Inc.’s (AEP) 26.4% gain on a YTD basis but has slightly outpaced AEP’s 35.1% return over the past 52 weeks.
As DUK has outperformed the broader market over the past year, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 18 analysts covering the stock, and as of writing, DUK is trading slightly below the mean price target of $117.13.
On the date of publication, Sohini Mondal 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.
