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

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Duke Energy (DUK - Free Report) closed the most recent trading day at $106.83, moving -0.7% from the previous trading session. This move lagged the S&P 500's daily gain of 1.5%. At the same time, the Dow added 1.12%, and the tech-heavy Nasdaq gained 0.32%.

Prior to today's trading, shares of the electric utility had lost 2.63% over the past month. This has was narrower than the Utilities sector's loss of 10.64% and the S&P 500's loss of 6.54% in that time.

Investors will be hoping for strength from Duke Energy as it approaches its next earnings release. In that report, analysts expect Duke Energy to post earnings of $1.18 per share. This would mark year-over-year growth of 2.61%. Meanwhile, our latest consensus estimate is calling for revenue of $6.05 billion, up 5.04% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.47 per share and revenue of $26.76 billion. These totals would mark changes of +4.39% and +6.64%, respectively, from last year.

Any recent changes to analyst estimates for Duke Energy should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Duke Energy currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Duke Energy is currently trading at a Forward P/E ratio of 19.68. For comparison, its industry has an average Forward P/E of 18.66, which means Duke Energy is trading at a premium to the group.

Also, we should mention that DUK has a PEG ratio of 3.24. 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. The Utility - Electric Power was holding an average PEG ratio of 3.19 at yesterday's closing price.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% 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.

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