Allentown, Pennsylvania-based PPL Corporation (PPL) operates as an energy company. It provides electricity and natural gas to over 3.6 million customers in the U.S. With a market cap of $23.9 billion, PPL operates through Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," PPL fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the utilities-regulated electric industry.
PPL touched its 52-week high of $32.82 on Sep. 16 and is currently trading 2% below that peak. PPL gained 14.7% over the past three months, outpacing the Utilities Select Sector SPDR Fund’s (XLU) 13.4% gains over the same time frame.
Over the longer term, PPL looks even more attractive. While PPL gained 18.6% in 2024, trailing XLU’s 23.9% gains on a YTD basis, it has risen 25.2% over the past 52 weeks, surpassing XLU’s 21.9% returns over the same time frame.
To confirm the bullish trend, PPL has consistently traded above its 200-day moving average since mid-February and above its 50-day moving average since mid-April with slight fluctuations.
Shares of PPL climbed 1.1% after the release of its second-quarter earnings on Aug. 2. The utility company reported a robust 3.2% year-over-year growth in operating revenues, reaching $1.9 billion. This growth was supported by a significant 19.1% reduction in energy purchase expenses, which contributed to a decline in total operating costs and a 4% expansion in operating margin to 20.7%. Furthermore, PPL's net income surged by an impressive 69.6% to $190 million. The company's adjusted EPS of $0.38 exceeded consensus estimates by 22.6%, bolstering investor confidence.
PPL’s competitor Consolidated Edison, Inc. (ED) gained 12.9% over the past 52 weeks and 13.7% on a YTD basis underperforming PPL.
Among the 13 analysts covering the PPL stock, the consensus rating is a “Moderate Buy.” The mean price target of $32.25 suggests a marginal upside from current price levels.
On the date of publication, Aditya Sarawgi 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.
