Latest news with #DukeEnergyCorporation
Yahoo
2 days ago
- Business
- Yahoo
Duke Energy (DUK) Reports Nearly $1 Billion Profit, Eyes $87 Billion Growth Plan
We recently published . Duke Energy Corporation (NYSE:DUK) is one of these profitable utility stocks. Duke Energy Corporation (NYSE:DUK), one of the largest U.S. electric utilities, serves 8.6 million electricity and 1.7 million natural gas customers across multiple states. With 55,100 MW of capacity, the company is focused on transitioning its energy mix toward natural gas, nuclear, renewables, and energy storage, while maintaining reliability and customer value. In Q2 2025, Duke Energy Corporation (NYSE:DUK) reported nearly $1 billion in profits, driven by rate increases and strong commercial growth, including a $10 billion Amazon data center investment in North Carolina. The business is expanding natural gas generation with two major projects, a 1,360 MW combined-cycle plant in Person County and an 850 MW plant at Marshall Steam Station, both expected online by 2028. Strategically, the corporation plans to merge its two North Carolina utilities, Duke Energy Carolinas and Duke Energy Progress, into a single entity by January 2027, pending approval. This consolidation aims to standardize rates across the region and is expected to save customers about $1 billion through 2038. To fund its $87 billion five-year growth plan, Duke Energy Corporation (NYSE:DUK) sold a 19.7% stake in its Florida utility for $6 billion and agreed to sell its Piedmont Tennessee Natural Gas business for $2.48 billion, strengthening its financial position. Pixabay/Public Domain Additionally, the business is enhancing energy efficiency and demand response programs in South Carolina, increasing incentives to help customers reduce consumption and costs. While we acknowledge the potential of DUK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
09-07-2025
- Business
- Yahoo
Duke Energy's (DUK) Subsidiary Eyes More Revenues in South Carolina
Duke Energy Corporation (NYSE:DUK) is one of the 10 best defensive stocks to buy in a volatile market. On July 1, the company's subsidiary, Duke Energy Carolinas, filed a request for a 7.7% rate increase in South Carolina. If approved, the new power rates will come into effect early next year. A senior executive of the energy sector company speaking in front of a board of investors. The proposed rate increase will result in a monthly bill increase of up to $10.38 for residential customers using 1,000 kilowatt-hours of electricity. Commercial customers are to experience a 5.4% average bill increase, while industrial customers will face an average increase of about 5.2%. The proposed rate increase will increase Duke Energy's annual revenue in South Carolina by up to $150.5 million. The increase is in response to the investments the company has made in the power grid, improved reliability, and storm resilience. While we acknowledge the potential of DUK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
26-04-2025
- Business
- Yahoo
Duke Energy Corporation (DUK): Among the Growing Dividend Stocks with Low PE Ratios
We recently published a list of the . In this article, we are going to take a look at where Duke Energy Corporation (NYSE:DUK) stands against other growing dividend stocks. Value stocks are enjoying a rare period of strength amid this year's broader market downturn. With earnings season approaching, it remains to be seen whether their recent edge over high-growth stocks will hold. The S&P Value Index—which includes sectors like banking, consumer staples, and healthcare, featuring companies that trade at relatively low valuations—has fallen around 9% this year. That's a smaller drop compared to the more than 15% decline seen in the growth-focused counterpart. Concerns over steep valuations in the tech sector, coupled with a wave of risk aversion triggered by tariffs, have pushed investors to shift from growth to value. While similar shifts haven't lasted long in the past, some investors believe that this time could be different, as expectations for value-oriented firms are modest enough that they may exceed them when earnings reports begin next month. Dan Morgan, senior portfolio manager at Synovus Trust, made the following comment about value investing: 'The bar has been set pretty low for value stocks compared to the uncertainty surrounding growth names and their ability to deliver on earnings estimates. If value can at least match or slightly beat expectations, the runway is clear for them.' According to data from Bloomberg Intelligence, analysts are forecasting a 12% decline in first-quarter earnings for value companies compared to the same period last year, while growth companies are expected to post a 20% increase. Supporters of value stocks believe that these lower expectations are already factored into their relatively modest valuations. On the other hand, optimism surrounding growth stocks—particularly in the tech sector—has soared in recent years, largely driven by enthusiasm over advancements in artificial intelligence. Historically, value stocks have lagged behind. Over the past 20 years, the S&P 500 Value Index has only outperformed its growth counterpart five times on an annual basis. During that period, the value index climbed 202%, while the growth index surged by 600%. Michael O'Rourke, chief market strategist at JonesTrading Institutional Services, made the following statement: 'Growth is about 40% more expensive; this outperformance of value was very long overdue. Due to the incredible strength of the Magnificent Seven, too many investors crowded into growth thinking it won't correct.' Investors often turn to dividend stocks when looking at companies with lower valuations. Dan Lefkovitz, a strategist at Morningstar Indexes, pointed out that dividend-growth stocks—those known for consistently raising their payouts—have underperformed the broader market in 2024. He attributed this to a market that has largely been driven by a handful of fast-growing tech names. However, he also remarked that while dividend-paying stocks may trail during such growth-led rallies, they tend to hold up better during market downturns, as seen in 2022 and 2018. Companies that consistently raise their dividends are often both profitable and financially stable—traits that become especially important during times of economic downturn. Aerial view of a power plant near a lake lit up at night, showing off the company's expansive electricity generation capabilities. For this list, we focused on dividend-paying companies that have consistently paid dividends over the years and have also demonstrated a track record of increasing their payouts. From that group, we considered stocks with forward P/E ratios below 25, as of April 22. The stocks are ranked in ascending order of their P/E ratios. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Forward P/E Ratio as of April 22: 19.08 Duke Energy Corporation (NYSE:DUK) is a North Carolina-based electric power and natural gas holding company that is primarily involved in the generation, transmission, distribution, and sale of electricity. Since the start of 2025, the stock has surged by over 13%, outperforming the broader market. In the fourth quarter of 2024, Duke Energy Corporation (NYSE:DUK) posted an adjusted earnings per share of $1.66, edging past market expectations by a cent. However, its revenue came in at $7.36 billion, missing forecasts by roughly $294 million. The company faced significant financial setbacks due to Hurricanes Debby, Milton, and Helene, with restoration costs estimated between $2.4 billion and $2.6 billion. Despite these challenges, Duke's electric and gas divisions saw a 5% year-over-year increase in income, reaching approximately $1.4 billion for the quarter. Duke Energy Corporation (NYSE:DUK) is a solid dividend payer, as the company has distributed dividends regularly for 99 consecutive years. Moreover, it has raised its payouts for 13 consecutive years, which makes DUK one of the best growing dividend stocks. The company offers a quarterly dividend of $1.045 per share and has a dividend yield of 3.4%, as of April 22. Overall, DUK ranks 24th on our list of the best growing dividend stocks with low P/E ratios. While we acknowledge the potential of DUK as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than DUK but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
Yahoo
18-04-2025
- Business
- Yahoo
Duke Energy Corporation (DUK): Among the Best Renewable Energy Stocks to Buy in 2025
We recently published a list of . In this article, we are going to take a look at where Duke Energy Corporation (NYSE:DUK) stands against other best renewable energy stocks to buy in 2025. Governments are focused on clean energy worldwide. In 2024, a record 30 GW of utility-scale solar power to the U.S. grid was produced, accounting for almost 61% of capacity additions last year. The expansion of green energy holds much promise for clean energy stocks in 2025 and ahead. READ ALSO: 10 Best Clean Energy Stocks to Buy According to Billionaires President Trump's focus on domestic energy production is expected to boost local production. Solar and storage energy, which will account for 84% of new grid capacity in 2024, are major sources of realizing this vision. According to the U.S. Energy Information and Administration (EIA), around 63 GW of new utility-scale electric generating capacity is expected to be added to the U.S. power grid in 2025. This will mark a 30% growth from 2024. Solar and battery storage combined account for 81% of the expected total capacity additions, with solar driving 50% of the growth. In 2025, the buildout of big solar and battery plants is estimated to reach an all-time high. The wind projects will also add to the new power capacity in renewable and battery energy sources, which are expected to reach 93%. EIA expects 7.7 GW of wind energy capacity to be added to the U.S. grid in 2025. 'Renewables will be the biggest beneficiary of growing electricity demand because they are the cheapest option, and [electricity buyers] will always absorb as much of the cheapest source of power before turning to more expensive forms of power,' Bruce Flatt, Brookfield's chief executive, told Wall Street analysts. According to IEA, renewable energy consumption in the power, transport, and heat sectors is expected to rise by over 60% from 2024 to 2030. This reflects the share of renewables in final energy consumption to reach almost 20% by 2030. The growing electricity demand will also drive the production of renewable energy. Electricity generation from clean sources makes up almost three-quarters of the overall growth, driven by policy changes in more than 130 countries. We used the Finviz screener and renewable energy ETFs to shortlist renewable energy companies with a market capitalization of more than $500 million. We then looked for renewable stocks widely held by hedge funds. Data for the number of hedge fund investors for each stock was taken from Insider Monkey's database, updated as of Q4 2024. Finally, the 12 best renewable energy stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them. Why are we interested in the stocks that hedge funds and billionaire investors pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Aerial view of a power plant near a lake lit up at night, showing off the company's expansive electricity generation capabilities. No. of Hedge Fund Holders: 62 Duke Energy Corporation (NYSE:DUK) is one of the largest power companies in the U.S. The company serves through two major segments, including electricity and gas. Duke currently has over 11,900 MW of renewable generating capacity, which is expected to reach 30,000 MW by 2035. The company remains focused on net-zero targets and estimates renewables to be its biggest generation source by 2050. It is heavily investing in wind, solar, and battery storage to upgrade its energy sources. Duke Energy Corporation (NYSE:DUK) has upgraded its five-year capital expenditure plan by 13.7% to $83 billion. This plan is set to accommodate the rising demand due to population growth and the expansion of data centers. Recently, Morgan Stanley analyst Stephen Byrd increased the price target on DUK shares from $123 to $128, maintaining an Equal Weight rating on the stock. The analyst is bullish on diversified utilities and independent power producers. The strong energy demand from data centers and efforts to defend renewables will be key for companies like Duke Energy. Overall, DUK ranks 6th on our list of best renewable energy stocks to buy in 2025. While we acknowledge the potential of DUK to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than DUK but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
17-04-2025
- Business
- Yahoo
Is Duke Energy Corporation (DUK) the Best Large-Cap Value Stock to Buy as the Recession Hits?
We recently published a list of . In this article, we are going to take a look at where Duke Energy Corporation (NYSE:DUK) stands against other best large-cap value stocks to buy as the recession hits. Goldman Sachs highlighted that equities around the world traded in and out of a bear market — which is often defined as a 20% decline from the recent peak. According to Peter Oppenheimer, chief global equity strategist at Goldman Sachs Research, the history of bear markets can provide some clues regarding the duration and severity of such downturns. U.S. stocks ended significantly higher after Trump announced his decision to put a 90-day pause on the additional country-specific portion of the reciprocal tariffs. That being said, Oppenheimer believes that a sustained rebound isn't yet in place. As per the strategist, the valuations are required to adjust further before equities can shift into the 'hope' phase of the next cycle. With the Q1 2025 earnings season underway, Morningstar informs that investors can expect more focus than usual on what companies want to say regarding their outlooks, while the uncertainty surrounding tariffs means offering weaker, less confident, or even no guidance. Tariffs can impact the corporate bottom lines in several ways, both directly and indirectly. Notably, the increased import costs put more pressure on the margins. While some firms can decide to alleviate the pressure by increasing the prices for customers, others can choose to absorb them, says the firm. Morningstar, while quoting FactSet's consensus estimates, mentioned that analysts expect 6.8% earnings growth in Q1 for companies in the S&P 500 benchmark index. For the full year, analysts anticipate an 11.2% growth. READ ALSO: and . Forward guidance is what generally moves the financial markets. If the firm warns that there can be a possibility to see smaller profits, the stock tends to fall. This might happen across the market, but there is a silver lining. As per Morningstar chief research and investment officer Dan Kemp, it is important to note that most of the value lies in the future. Therefore, the impact on the company's real value is expected to be muted. According to him, widening of the gap between stock prices and future real values can be a very fertile soil for the market investors. Christian Mueller-Glissmann, head of asset allocation research within portfolio strategy for Goldman Sachs Research, says that investors need to think about diversifying regionally and across styles. To be specific, this consists of low-volatility stocks, i.e., equities from more defensive sectors, that fluctuate less than the broader market. To list the 15 Best Large-Cap Value Stocks to Buy as the Recession Hits, we considered companies from the industries which are expected to be resilient in a recessionary environment, such as utilities, healthcare, and consumer. Next, we chose the stocks that trade at a forward P/E of less than ~20.0x. Finally, the stocks are arranged in ascending order of the hedge fund sentiments, as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Aerial view of a power plant near a lake lit up at night, showing off the company's expansive electricity generation capabilities. Duke Energy Corporation (NYSE:DUK) operates as an energy company. Jefferies analyst Julien Dumoulin-Smith upped the company's price objective to $133.00 from the prior target of $132.00 while reiterating a 'Buy' rating. Notably, the adjustment demonstrates a favorable outlook on Duke Energy Corporation (NYSE:DUK)'s potential to act as a stable investment amidst market uncertainties, including tariffs and other macroeconomic challenges. The analyst believes that the company's stock remains less impacted by the global tariff issues as compared to other companies. Overall, the firm's analysis hints at the company's capacity to provide investors with a mix of growth and stability, which makes it a compelling investment option. Duke Energy Corporation (NYSE:DUK)'s focus on clean energy and sustainability can deliver several benefits. The transition towards clean energy aligns the company with growing consumer and investor preferences for sustainable businesses. This can improve its reputation, potentially bringing in environmentally-conscious customers and investors. It can also develop new business opportunities. Duke Energy Corporation (NYSE:DUK)'s higher full-year 2024 adjusted results were mainly aided by growth from rate increases and riders, improved weather, and higher sales volumes. Notably, the company posted an adjusted EPS of $5.90 as compared to $5.56 in FY 2023. Overall, DUK ranks 9th on our list of best large-cap value stocks to buy as the recession hits. While we acknowledge the potential of DUK as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than DUK but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at .
