Duke Energy
DUK
$119.85
-2.31%
Duke Energy Corporation is one of the largest regulated electric utility holding companies in the United States, providing electricity and natural gas to over 8 million electric and 1.6 million gas customers across the Carolinas, Indiana, Florida, Ohio, and Kentucky. As a dominant player in the regulated utilities sector, Duke Energy operates through its Electric Utilities and Infrastructure and Gas Utilities and Infrastructure segments, benefiting from a stable, rate-regulated business model. The current investor narrative centers on the company's ability to navigate the energy transition, with significant capital expenditures directed toward grid modernization and renewable energy, while also managing the financial impacts of higher interest rates and evolving regulatory requirements. Recent discussions in the market have highlighted utilities as potential hedges against inflation and energy price volatility, positioning Duke Energy as a defensive play amid broader market uncertainty.…
DUK
Duke Energy
$119.85
Related headlines
Investment Opinion: Should I buy DUK Today?
Rating & Thesis: We rate Duke Energy a 'Buy' based on its attractive valuation, strong revenue growth, and defensive characteristics. The consensus analyst rating is 'buy' with an average target price of $137.56, implying a 14.8% upside. The thesis is that DUK's regulated business model provides stable earnings, and the current discount to peers offers a favorable entry point for long-term investors.
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DUK 12-Month Price Forecast
The AI assessment is neutral with medium confidence. Duke Energy's fundamentals are solid, with strong revenue growth and a discounted valuation, but the technical downtrend and high debt levels temper enthusiasm. The stock is likely to perform in line with the market over the next 12 months, with a slight upside bias. If the stock breaks above $125 and maintains revenue growth, the stance would upgrade to bullish. Conversely, a break below $113.90 would downgrade to bearish.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Duke Energy's 12-month outlook, with a consensus price target around $137.28 and implied upside of +14.5% versus the current price.
Average Target
$137.28
0 analysts
Implied Upside
+14.5%
vs. current price
Analyst Count
—
covering this stock
Price Range
$129 - $147
Analyst target range
Duke Energy is covered by 18 analysts, with a consensus recommendation of 'buy' and a mean recommendation score of 2.09 (where 1 is strong buy and 5 is sell). The average target price is $137.56, implying an upside of 14.8% from the current price of $119.85. The target range spans from $129.00 to $147.00, with the low target still above the current price, indicating that even the most bearish analyst sees some upside. Recent ratings actions have been mostly positive, with Barclays and Mizuho reiterating Overweight/Outperform ratings, while Evercore ISI downgraded from Outperform to In Line in March 2026, suggesting some caution but overall bullish sentiment.
Bulls vs Bears: DUK Investment Factors
Duke Energy presents a mixed picture: strong fundamentals with revenue growth, a discounted valuation, and a solid dividend, but offset by a downtrend, high debt, and regulatory risks. The bull case is supported by analyst targets and a defensive profile, while the bear case is driven by technical weakness and leverage. Currently, the bearish technicals weigh more heavily in the short term, but the long-term fundamentals provide a floor. The key tension is whether the stock's decline is a value opportunity or a signal of deeper issues. If the stock stabilizes above $113.90 and revenue growth continues, the bull case strengthens; if it breaks below, the bear case dominates.
Bullish
- Strong Revenue Growth: Q1 2026 revenue grew 11.26% YoY to $9.178B, driven by rate increases and customer growth. This outpaces the typical utility growth rate and supports the company's investment thesis.
- Attractive Valuation Discount: DUK trades at a trailing PE of 18.58 and forward PE of 16.71, a ~15% discount to the industry average PE of 22x. This suggests the stock is undervalued relative to peers, offering a margin of safety.
- Solid Dividend Yield: With a dividend yield of 3.62% and a payout ratio of 66.4%, DUK provides a stable income stream. The yield is well above the S&P 500 average, appealing to income-focused investors.
- Positive Analyst Sentiment: Analysts have a consensus 'buy' rating with a mean score of 2.09 (1=strong buy). The average target price of $137.56 implies a 14.8% upside, with even the low target of $129 above the current price.
Bearish
- Downtrend and Weak Momentum: The stock is in a clear downtrend, down 3.46% over the past year and 6.33% in the last month. It trades near its 52-week low of $113.90, indicating persistent selling pressure.
- High Debt Levels: Debt-to-equity ratio stands at 1.75, reflecting significant leverage. Interest expenses were $968M in Q1 2026, up from $889M a year ago, which could pressure earnings if rates remain high.
- Underperformance vs Market: DUK has underperformed the S&P 500 significantly, with relative strength of -23.9% over the past year. This suggests investors are favoring growth sectors over defensive utilities.
- Regulatory and Rate Risks: The company faces regulatory uncertainty, as seen in Evercore ISI's downgrade to 'In Line' in March 2026. Changes in rate case outcomes or environmental regulations could impact profitability.
DUK Technical Analysis
Duke Energy's stock is currently in a clear downtrend, with the price at $119.85 as of August 21, 2026, reflecting a 1-year decline of 3.46%. The stock is trading at 89% of its 52-week range, sitting closer to the low of $113.90 than the high of $134.49, indicating bearish momentum and a potential value opportunity if the decline stabilizes. The 52-week low was set recently, and the stock's position near this level suggests that investors are pricing in negative catalysts, but also that a rebound could occur if support holds.
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
-3.5%
Cumulative gain past year
| Period | DUK Return | S&P 500 |
|---|---|---|
| 1m | -6.3% | +3.6% |
| 3m | -4.6% | +2.7% |
| 6m | -5.5% | +11.4% |
| 1y | -3.5% | +18.7% |
| ytd | +2.1% | +12.3% |
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DUK Fundamental Analysis
Duke Energy's revenue has shown strong growth, with the most recent quarter (Q1 2026) reporting revenue of $9.178 billion, a 11.26% increase year-over-year. This growth is driven by the Electric Utilities and Infrastructure segment, which contributed $8.18 billion in revenue, while the Gas Utilities segment added $394 million. The company's net income for Q1 2026 was $1.55 billion, with an EPS of $1.97, reflecting a net margin of 16.89%. Over the past year, revenue has been volatile, with Q4 2025 at $7.938 billion and Q3 2025 at $8.669 billion, but the overall trend is positive, supported by rate increases and customer 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
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Valuation Analysis: Is DUK Overvalued?
Given Duke Energy's positive net income, the PE ratio is the primary valuation metric. The trailing PE is 18.58, while the forward PE is 16.71, indicating that the market expects earnings growth. The gap between trailing and forward PE suggests a modest improvement in earnings, which is consistent with the company's regulated growth model. Compared to the industry average PE of 22x (from valuation data), Duke Energy trades at a discount of approximately 15%, which may be justified by its lower growth prospects relative to some peers, but it also offers a defensive profile with a dividend yield of 3.62%.
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
Financial & Operational Risks: Duke Energy carries a substantial debt load, with a debt-to-equity ratio of 1.75, and interest expenses of $968 million in Q1 2026, up from $889 million a year earlier. This leverage amplifies the impact of rising interest rates on net income, which could compress margins. The company's current ratio of 0.55 indicates potential liquidity stress, though regulated utilities typically have stable cash flows. Additionally, the payout ratio of 66.4% leaves limited room for dividend increases if earnings falter, and the reliance on rate case approvals introduces regulatory lag risk.