PPL Corporation (PPL), headquartered in Allentown, Pennsylvania, focuses on providing electricity and natural gas to approximately 3.60 million customers. Valued at $22.2 billion by market cap, the company generates electricity from power plants as well as markets wholesale and retail energy and natural gas. It also delivers natural gas to customers in Kentucky and Rhode Island and generates electricity from power plants in Kentucky.
Shares of this leading utility company have slightly underperformed the broader market over the past year. PPL has gained 15.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 15.8%. However, in 2024, PPL’s stock is up 10.9%, surpassing SPX’s 8.7% rise on a YTD basis.
Zooming in further, PPL outperformed compared to the S&P 500 Utilities Sector SPDR (XLU). The exchange-traded fund has gained about 13.3% over the past year. However, the ETF’s 14.5% gains on a YTD basis outshine the stock’s returns over the same time frame.
On Aug. 2, PPL shares closed up more than 1% after reporting its Q2 results. Its adjusted EPS of $0.38 surpassed Wall Street expectations of $0.31. The company’s revenue stood at $1.88 billion, up 3.2% year over year. PPL reaffirmed its full-year adjusted EPS and expects it to be between $1.63 and $1.75. The company also reaffirmed its projected annual earnings and dividend growth of 6% to 8% through at least 2027.
For the current fiscal year, ending in December, analysts expect PPL’s EPS to grow 7.5% to $1.72 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
The consensus rating among the 13 analysts covering PPL stock is a “Moderate Buy” overall. That’s based on seven “Strong Buy” ratings, two “Moderate Buys,” and four “Holds.”
On Aug. 4, BofA analyst maintained a “Buy” rating on PPL stock and raised the price target from $31 to $33, implying a potential upside of 9.8% from current levels.
While PPL currently trades above its mean price target of $29.92, the Street-high price target of $32 suggests an upside potential of 6.5%.
On the date of publication, Neha Panjwani 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.
