#2 - Duke Energy (NYSE:DUK)
Utilities stocks aren’t always the most attractive to own. But in a lower interest rate cycle, companies like Duke Energy Corp. (NYSE: DUK) should be attractive to investors.
Utility companies, in general, carry a lot of debt. In theory, that could eat into earnings, but that hasn't been the case with Duke Energy. Full-year earnings per share (EPS) in 2023 were $5.56, which edged out the $5.33 EPS posted in 2022. And the first two quarters of 2024 continue that year-over-year growth.
Nevertheless, analysts have been raising their price targets since Duke Power reported earnings in August. And that activity has continued after the Federal Reserve lowered interest rates in September.
As of October 1, 2024, these increased price targets haven’t sufficiently raised the consensus price target. However, investors can buy DUK stock and collect its attractive dividend, which has increased for 20 consecutive years and currently has a 3.6% yield.
About Duke Energy
Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through two segments: Electric Utilities and Infrastructure (EU&I), and Gas Utilities and Infrastructure (GU&I). The EU&I segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest.
Read More - Current Price
- $114.60
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $121.85 (6.3% Upside)
