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Duke Energy (DUK) Gains As Market Dips: What You Should Know

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Duke Energy (DUK - Free Report) closed at $107.77 in the latest trading session, marking a +0.04% move from the prior day. The stock outpaced the S&P 500's daily loss of 2.91%. Elsewhere, the Dow lost 2.73%, while the tech-heavy Nasdaq lost 0.25%.

Prior to today's trading, shares of the electric utility had lost 1.03% over the past month. This has lagged the Utilities sector's gain of 0.91% and the S&P 500's gain of 0.84% in that time.

Duke Energy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.18, up 2.61% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.05 billion, up 5.04% from the year-ago period.

DUK's full-year Zacks Consensus Estimates are calling for earnings of $5.47 per share and revenue of $26.78 billion. These results would represent year-over-year changes of +4.39% and +6.7%, respectively.

It is also important to note the recent changes to analyst estimates for Duke Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Duke Energy is currently a Zacks Rank #3 (Hold).

Investors should also note Duke Energy's current valuation metrics, including its Forward P/E ratio of 19.71. This represents a premium compared to its industry's average Forward P/E of 19.27.

Also, we should mention that DUK has a PEG ratio of 3.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3.32 based on yesterday's closing prices.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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