North Carolina-based Duke Energy Corporation (DUK) is a prominent energy holding company in the U.S. With a market cap of $48.3 billion, the company provides a range of energy solutions to customers through three main business units: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables. The Fortune 150 company is aggressively pursuing a clean energy strategy to achieve at least a 50% reduction in carbon emissions by 2030 and net-zero carbon emissions by 2050. The company is also upgrading its electric grid, expanding battery storage, and exploring zero-emission technologies like hydrogen and advanced nuclear power.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Duke Energy fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the utilities sector.
Despite the strength, Duke Energy has slipped 4.6% from its 52-week high of $104.87, achieved on June 4. However, shares of the utility company have surged 5.4% over the last three months, surpassing the Dow Jones Industrial Average’s ($DOWI) marginal gains during the same time frame.
In the longer term, DUK stock has gained 3.1% on a YTD basis, slightly exceeding DOWI’s 3% returns in 2024. However, DUK’s 8.5% gains over the past 52 weeks trail DOWI's 13.2% gains over the past year.
To confirm the bullish price trend, DUK has been trading above its 200-day and 100-day moving averages since late April.
Duke Energy’s impressive price momentum this year can be attributed to its rising customer base and its growth in electric utilities and infrastructure. The company is also steadfastly progressing with its comprehensive generation transition strategy, utilizing a diverse range of energy sources to meet the increasing power demand. This "all of the above" approach enables the company to provide reliable and sustainable energy solutions to its customers.
On May 7, DUK’s stock rose 1.8% following the release of Q1 earnings results with a net income of $1.1 billion and an EPS of $1.44, beating Wall Street’s estimates by 3.6%. Duke Energy also reaffirmed its full-year EPS, projecting between $5.85 and $6.10.
Duke Energy’s rival, Dominion Energy, Inc. (D), outperforms DUK in 2024, with its shares up 5.2%. However, over the past 52 weeks, shares of Dominion Energy dipped 7.3%, lagging behind DUK’s return over the same time frame.
Analysts are moderately bullish on DUK’s prospects. The stock has a consensus rating of “Moderate Buy” from 17 analysts covering it, and the mean target of $106.13 suggests an upside potential of 6.1% to the current price levels.
On the date of publication, Kritika Sarmah 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.
