What investors need to know

In the latest trading session, Duke Energy (DUK) closed at $115.14, down -0.64% from the previous day. The stock lagged the S&P 500 which was up 1.7% for the day. The Dow, on the other hand, posted a gain of 1.26%, and the tech-heavy Nasdaq gained 2.51%.

Shares of the energy provider have gained 2.79% over the past month, lagging the utilities sector's gain of 4.97% but outperforming the S&P 500's gain of 1.27%.

Duke Energy's upcoming earnings release will be of great interest to investors. The company's upcoming earnings per share are estimated at $1.86, representing a decrease of 4.12% from the year-ago quarter. At the same time, our latest consensus estimate is calling for revenue of $8.15 billion, representing an increase of 1.98% from the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.97 per share and revenue of $30.43 billion, representing changes of +7.37% and +4.71%, respectively, from the prior year.

It is also important to note recent changes in analyst estimates for Duke Energy. These recent changes tend to reflect the evolving nature of near-term business trends. Consequently, upward revisions to estimates express analysts' positive view of the company's business and its ability to generate earnings.

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

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus Estimate for earnings per share remained stable. Duke Energy currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Duke Energy is currently trading at a P/E ratio of 19.42. The industry average is 17.6, so one might conclude that Duke Energy is trading at a premium comparatively.

It is also important to note that DUK currently has a PEG ratio of 3.18. The PEG ratio is similar to the commonly used P/E ratio, but this value also takes into account the company's expected earnings growth rate. As of the market close yesterday, the Utilities – Electricity industry had an average PEG ratio of 2.79.

The Utilities – Electricity industry is part of the Utilities sector. Currently, this industry has a Zacks Industry Rank of 42, putting it in the top 17% of over 250 industries.

The story continues

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

Remember to use Zacks.com to track these and other metrics on stock movement during the coming trading sessions.

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