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How Duke Energy Stock’s Valuation Compares with Peers’

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Dec. 7 2018, Updated 7:40 p.m. ET

Duke Energy

Duke Energy (DUK), the country’s second-largest utility holding company by market capitalization, derives almost all of its earnings from regulated operations, which facilitate stable earnings and dividends. Duke Energy has one of the longest dividend payment histories among peers and has paid dividends to shareholders for 368 consecutive quarters.

Duke Energy stock has been on a roll recently. It has rallied more than 15% since the Fed’s rate hike in September, notably outperforming broader utilities (XLU). To read learn more, read What Duke Energy’s Chart Indicators Suggest.

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Valuation

Duke Energy’s forward PE multiple is 17.5x, lower than its five-year historical average and at a fair valuation compared with peers.

Analysts’ price target

Analysts seem to be cautious about Duke Energy stock. Of the 18 analysts tracking Duke, ten recommend “hold,” two recommend “strong buy,” five recommend “buy,” and one recommends “sell.” Their median target price of $86.50 implies a ~4% downside over the next year from the stock’s current price of $89.80. SunTrust Robinson Humphrey raised DUK’s target price from $86 to $93 on December 3.

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