Duke Energy Corp. (NYSE: DUK) will report its fourth-quarter earnings, Wednesday, before the markets open. Thomson Reuters has consensus estimates of $0.88 in earnings per share (EPS) on $6.25 billion in revenue. In the fourth quarter of last year, the utility reported $1.00 in EPS on $6.11 billion in revenue.
This company is one of the largest market cap stocks in the utility sector, which has performed outstandingly over the past year. Because a significant portion of the company’s earnings are derived from regulated operations, the stock has a very stable earnings base. Also, the company has delivered a healthy financial performance in the past and remains an attractive option for income-seeking investors going forward. Duke’s dividend currently yields 4.0%.
Duke’s most recent earnings report looked disappointing at first glance. However, the reality is that Duke’s stock came within two cents of an all-time high at that time, and the report literally had many issues inside of units that may have skewed the report.
A couple analysts made calls towards the end of January regarding this utility giant. Argus maintained a Buy rating and raised its price target to $99.00 from $93.00. J.P. Morgan maintained an Overweight rating and raised its price target to $94.00 from $91.00. From Friday’s close of $79.84, the new price targets imply upside of 24.0% and 17.7%, respectively.
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The 50-day moving average currently reads at $83.83. Throughout the fourth quarter, it has acted as strong support. Duke shares have only recently crossed under that moving average after a large drop in early February. The 200-day moving average is immaterial at $75.54.
Shares of Duke were up 0.7% at $80.38 in the first half of Tuesday’s trading session. The stock has a consensus analyst price target of $85.00 and a 52-week trading range of $68.10 to $89.97.
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