Duke Energy
DUK
$123.90
+0.45%
Duke Energy Corporation is one of the largest electric power holding companies in the United States, providing regulated electricity and natural gas services to over 8 million electric customers and 1.6 million natural gas customers across the Carolinas, Indiana, Florida, Ohio, and Kentucky. As a dominant player in the regulated utility sector, Duke Energy operates with a vertically integrated model, leveraging its extensive infrastructure and regulatory approvals to maintain a stable, defensive business profile. The current investor narrative centers on the company's strategic investments in grid modernization and clean energy transition, alongside the potential for increased electricity demand from AI data centers, which could drive long-term load growth. However, the stock is also under scrutiny due to rising interest rates, regulatory challenges, and the need to balance capital expenditures with shareholder returns, making it a key holding for income-focused investors seeking stability in a volatile market.…
DUK
Duke Energy
$123.90
Related headlines
DUK 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Duke Energy's 12-month outlook, with a consensus price target around $138.84 and implied upside of +12.1% versus the current price.
Average Target
$138.84
0 analysts
Implied Upside
+12.1%
vs. current price
Analyst Count
—
covering this stock
Price Range
$131 - $146
Analyst target range
Duke Energy is covered by 19 analysts, with a consensus recommendation of 'Buy' and a mean rating of 2.13 (where 1 is Strong Buy and 5 is Sell). The average target price is $138.84, implying an upside of 10.7% from the current price of $125.43. The distribution of ratings includes 10 Buy, 7 Hold, and 2 Sell, indicating a generally positive but not overly bullish sentiment. The high target of $146 suggests that some analysts see significant upside potential, possibly driven by expectations of strong load growth from data centers and successful regulatory outcomes. The low target of $131 is only 4.4% above the current price, reflecting a more conservative view, likely due to concerns about interest rates and regulatory risks. The relatively narrow spread between the low and high targets (11.5% from low to high) indicates a moderate level of conviction among analysts, with no extreme bearish or bullish outliers. Recent ratings actions have been mostly neutral to positive, with no major downgrades, suggesting stability in analyst sentiment.
Bulls vs Bears: DUK Investment Factors
Duke Energy presents a balanced investment case with strong revenue growth and a defensive profile, but faces headwinds from high debt and interest rate sensitivity. The bull case is supported by a discounted valuation and analyst upside, while the bear case highlights relative underperformance and regulatory risks. Currently, the evidence slightly favors the bull side due to the attractive yield and valuation, but the key tension lies in whether load growth from AI data centers can offset rising financing costs and regulatory hurdles.
Bullish
- Strong Revenue Growth: Q1 2026 revenue grew 11.26% YoY to $9.178B, driven by rate increases and higher demand, indicating robust top-line momentum for a regulated utility.
- Attractive Valuation vs Peers: Trailing PE of 18.58x is 15.5% below the industry average of 22x, offering a discount for a defensive, income-generating stock.
- Solid Dividend Yield: Dividend yield of 3.62% with a payout ratio of 66.4% provides a stable income stream, appealing to income-focused investors.
- Analyst Consensus Buy: 19 analysts rate DUK as a Buy with an average target of $138.84, implying 10.7% upside from the current price of $125.43.
Bearish
- High Debt-to-Equity: Debt-to-equity ratio of 1.75x is elevated, increasing financial risk and sensitivity to interest rate changes.
- Weak Relative Strength: DUK underperformed the S&P 500 by 15.07% over the past year, signaling investor preference for growth sectors over utilities.
- Modest Growth Expectations: Forward PE of 17.50x implies only ~6% EPS growth, limiting upside potential compared to higher-growth opportunities.
- Regulatory and Rate Risks: Regulatory challenges in key states like the Carolinas could delay rate hikes or reduce allowed returns, pressuring earnings.
DUK Technical Analysis
Duke Energy's stock is currently in a range-bound consolidation phase, with the price at $125.43 as of July 31, 2026, reflecting a modest 3.12% gain over the past year. The stock is trading at 80.4% of its 52-week range (between $113.90 low and $134.49 high), indicating it is closer to the upper end but not at extremes. This positioning suggests a balanced market sentiment, with the stock having recovered from its lows but lacking the momentum to break to new highs, possibly due to the defensive nature of utilities in a rising rate environment.
Beta
0.37
0.37x market volatility
Max Drawdown
-11.7%
Largest decline past year
52-Week Range
$114-$134
Price range past year
Annual Return
-1.0%
Cumulative gain past year
| Period | DUK Return | S&P 500 |
|---|---|---|
| 1m | -3.4% | +2.8% |
| 3m | -0.2% | +4.2% |
| 6m | +1.7% | +11.3% |
| 1y | -1.0% | +21.5% |
| ytd | +5.5% | +12.7% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
DUK Fundamental Analysis
Duke Energy's revenue trajectory shows a positive trend, with the most recent quarter (Q1 2026) reporting revenue of $9.178 billion, a year-over-year growth of 11.26%. This growth is driven by the Electric Utilities and Infrastructure segment, which contributed $8.18 billion, while the Gas Utilities segment added $394 million. The company has consistently grown revenue over the past quarters, from $7.508 billion in Q2 2025 to $8.669 billion in Q3 2025, indicating a steady upward trend. However, the growth rate has been variable, with Q1 2026 showing a significant acceleration compared to the prior year, likely due to rate increases and higher demand. This growth is a positive sign for the investment case, as it supports the company's ability to invest in infrastructure and maintain dividend growth.
Quarterly Revenue
$9.2B
2026-03
Revenue YoY Growth
+11.3%
YoY Comparison
Gross Margin
67.9%
Latest Quarter
Free Cash Flow
$6.6B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is DUK Overvalued?
Given Duke Energy's positive net income, the primary valuation metric selected is the price-to-earnings (PE) ratio. The trailing PE is 18.58x, while the forward PE is 17.50x, indicating that the market expects earnings growth. The gap between trailing and forward PE suggests a modest growth expectation, with earnings per share estimated to increase from $6.75 (trailing) to $7.17 (forward). Compared to the industry average PE of 22x, Duke Energy trades at a discount of approximately 15.5%, which is justified by its lower growth prospects relative to some peers, but also reflects its defensive characteristics. Historically, Duke Energy's PE has ranged from 12.8x to 27.6x over the past five years, with the current level near the middle of this range, suggesting that the stock is fairly valued relative to its own history, with no extreme overvaluation or undervaluation.
PE
18.6x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 13x~28x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
11.6x
Enterprise Value Multiple
Investment Risk Disclosure
Financially, Duke Energy carries a high debt-to-equity ratio of 1.75x, which amplifies interest expense—$968 million in Q1 2026—and makes earnings vulnerable to rising rates. The current ratio of 0.55 indicates liquidity pressure, though regulated utilities typically maintain stable cash flows. With a payout ratio of 66.4%, dividend coverage is adequate but leaves limited room for unexpected cash needs. Revenue concentration in regulated electric operations (89% of Q1 revenue) reduces diversification, though it provides stability. Market risks include valuation compression if interest rates stay elevated, as utilities are often treated as bond proxies. The stock's beta of 0.373 shows low correlation to the market, but its relative strength has been weak, lagging the S&P 500 by 15% over the past year. Competitive threats from independent power producers and renewable developers could pressure market share, while regulatory decisions in key states remain a wildcard. In a worst-case scenario, a prolonged rate-hike cycle combined with adverse regulatory rulings could push the stock to its 52-week low of $113.90, representing a 9.2% downside from the current price. Additionally, if load growth from data centers fails to materialize, earnings estimates could be cut, leading to a re-rating lower. Historical max drawdown of -11.65% suggests a potential loss of about $14.6 per share from current levels.