Duke Energy Stock Price Today is declining not just because it is overbought but due to a number of downgrades as well as approval for Duke Energy to “modernize” its statewide energy grid in Indiana.

Indiana’s Utility Regulatory Commission approved the company’s settlement with several key consumer groups due to its seven-year plan to modernize Indiana’s energy grid. As part of the settlement, Duke Energy agreed to reduce its return on equity to 10% from 10.5% for investments that flow through the plan’s bill tracker. This means customers will experience a slow and gradual rate increase of 0.75% a year between 2017 to 2022 which means Duke Energy will see a smaller return on the costs to upgrade the Indiana Energy Grid. This will lower revenue numbers for Duke Energy.

Duke Energy Stock August 6 Quarterly Earnings

Duke Energy reports earnings on August 6 and they are estimated at $1.00 per share on $5.7 billion of revenue. This compares to last year for the same quarter at 95 cents per share on $5.6 billion.

Duke Energy Stock Price To Earnings

Duke Energy Stock Price Today at $85.45 has the stock trading at 22.1 times price to earnings which is in-line with most other utility companies. Duke Energy Stock has an earnings per share of $3.94 which is an increase of 12.05% from the previous year. It continues to lead the Utility sector with a growing market share although the ROE is below the industry average.

DUKE Energy Stock has a dividend yield of 3.78% with a payout ratio of 83.7% which is above the industry average. This means dividend increases can continue but they will remain modest.

Duke Energy Stock Price Today

Comparing Duke Energy Stock Price Today with the last 3 years we can see that Duke Energy has had the same type of run-up in 2014 which ended on Jan 28 2015 when the stock reached an intraday high of $89.97. From there the stock declined throughout all of 2015 until it reached an intraday low of $65.50 on Dec 3 2015.
Since the December low, Duke Energy Stock has staged a comeback rally which has not yet recovered the old highs of Jan 28 2015 but has come close with a 52 week high of $87.31 which was set yesterday on July 6.
Duke Energy Stock Price Today compared over 3 years

Duke Energy Stock Price Today compared over 3 years

The question now is whether Duke Energy Stock can continue to rise and break through the $90 price or whether this is the start of another downturn in the stock. Whatever happens, it is important to understand how to setup trades to continue to generate profits while focusing on protecting the capital in use. That is the focus of today’s trade and strategy discussion……the rest of this Duke Energy Stock strategy discussion is for FullyInformed Members.

Duke Energy Stock Price Today Trade Discussion – July 7 2016

FullyInformed Members can review the latest Duke Energy Stock strategy article directly through this link or they can sign in to the full  members site here. Non-members can join here or read about the benefits of being a member.

Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.

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