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Duke Energy (DUK) Gains But Lags Market: What You Should Know

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Duke Energy (DUK - Free Report) closed at $97.12 in the latest trading session, marking a +1.88% move from the prior day. This change lagged the S&P 500's 3.06% gain on the day. Elsewhere, the Dow gained 2.8%, while the tech-heavy Nasdaq added 0.19%.

Heading into today, shares of the electric utility had lost 10.91% over the past month, lagging the Utilities sector's loss of 8.81% and the S&P 500's loss of 6.15% in that time.

Duke Energy will be looking to display strength as it nears its next earnings release. On that day, Duke Energy is projected to report earnings of $1.85 per share, which would represent a year-over-year decline of 1.6%. Meanwhile, our latest consensus estimate is calling for revenue of $7.19 billion, up 3.38% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.45 per share and revenue of $27.43 billion. These totals would mark changes of +4.01% and +9.29%, respectively, from last year.

Any recent changes to analyst estimates for Duke Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Duke Energy is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Duke Energy's current valuation metrics, including its Forward P/E ratio of 17.5. Its industry sports an average Forward P/E of 17.35, so we one might conclude that Duke Energy is trading at a premium comparatively.

Investors should also note that DUK has a PEG ratio of 2.87 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Utility - Electric Power was holding an average PEG ratio of 2.91 at yesterday's closing price.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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