Core Points - Duke Energy Florida will reduce residential customer bills by $9.77 starting January 2025 due to an annual adjustment for fuel costs and other clause adjustments [1][2] - Commercial and industrial customers will experience bill decreases ranging from 5.1% to 11.1%, depending on various factors [2] - The company is committed to enhancing the electric grid's security, reliability, and resiliency while prioritizing affordability for customers [3] Company Overview - Duke Energy Florida, a subsidiary of Duke Energy, has an energy capacity of 12,300 megawatts and serves 2 million customers across a 13,000-square-mile area in Florida [5] - Duke Energy, a Fortune 150 company, serves 8.4 million customers across multiple states and owns a total energy capacity of 54,800 megawatts [6] Future Considerations - The company plans to file for storm cost recovery related to hurricanes Debby, Helene, and Milton in December 2024, which may affect rates as early as March 2025 [4] - Duke Energy is focused on a clean energy transition, aiming for net-zero methane emissions by 2030 and net-zero carbon emissions by 2050, while investing in electric grid upgrades and cleaner energy sources [7]

Core Viewpoint - Duke Energy's Carolinas Resource Plan has received approval from the North Carolina Utilities Commission (NCUC), allowing the company to advance its clean energy initiatives while ensuring affordability and reliability for customers [1][4]. Background - Duke Energy submitted its Carolinas Resource Plan on August 17, 2023, outlining a strategy for cleaner energy in North and South Carolina while maintaining grid reliability and competitive rates [2]. - The company provided supplemental modeling to state regulators on January 31, 2024, due to an unprecedented increase in projected customer demand [3]. NCUC Order - The NCUC's order accepts the July settlement, emphasizing the importance of affordable rates and the need for Duke Energy to invest in its system to ensure reliable service as demand grows [5]. - The order directs Duke Energy to pursue specific near-term actions to maintain reliable service and keep rates below the national average [5]. Near-Term Resources - The NCUC approved the following near-term resource additions: - Solar: 3,460 MW of new solar generation, totaling 6,700 MW by 2031 - Battery: 1,100 MW of battery energy storage, totaling 2,700 MW by 2031 - Onshore Wind: 1,200 MW operational by 2033, with at least 300 MW by 2031 - Combustion Turbines: Four CTs by 2030, adding 900 MW beyond the previous order - Combined Cycles: Three CC units by 2031, adding 2,720 MW beyond the previous order [6]. Long-Term Resources - The NCUC approved continued development for: - Bad Creek II: $165 million in early development costs - Nuclear: $440 million in early development costs, targeting 300 MW by 2034 and 600 MW by 2035 - Offshore Wind: Evaluation of offshore wind's role, targeting 800 to 1,100 MW by 2034 and 2,200 to 2,400 MW by 2035 [7]. Modeling and Key Findings - The NCUC confirmed Duke Energy's recommended portfolio as the "reference portfolio" and increased the minimum planning reserve margin to 22% by 2031 [8]. - The requirement for a 70% carbon reduction by 2030 was waived, with an agreement to pursue this goal as soon as possible [8]. - The plan anticipates a 0.9% increase in inflation-adjusted bills by 2038 [8]. Next Steps - The Public Service Commission of South Carolina (PSCSC) will issue an order on or before November 26, 2024, after which Duke Energy will begin executing the plan and developing the modeling for the 2025 plan update [9]. Company Overview - Duke Energy, a Fortune 150 company, serves 8.4 million customers across multiple states and owns 54,800 MW of energy capacity [11]. - The company is focused on a clean energy transition, targeting net-zero carbon emissions from electricity generation by 2050 and investing in grid upgrades and cleaner generation [12].

Core Points - Duke Energy is offering free home energy assessments to help customers save on energy costs as winter approaches [2][3] - The company emphasizes the importance of energy efficiency and provides various programs and tips for customers to manage their energy usage effectively [4][6] Group 1: Energy-Saving Programs - The Home Energy House Call program provides customers with a free energy efficiency kit, customized usage reports, and expert recommendations to enhance energy savings [2] - The Smart $aver® home improvement rebate program encourages customers to insulate and seal their homes to maintain warmth and reduce energy costs [3] - The Flex Savings Option allows customers to lower energy costs by shifting usage to off-peak times, utilizing smart meter technology [4] Group 2: Usage Monitoring and Tips - Customers can receive Usage Alerts to better predict electricity spending and adjust their habits accordingly [5] - Low- to no-cost energy-saving tips include reducing thermostat settings, changing air filters regularly, and sealing air leaks, which can save 10% to 20% in heating costs [6] - Replacing standard bulbs with LEDs can lead to significant savings, with potential savings of up to $480 over the bulbs' lifetime [6] Group 3: Company Overview - Duke Energy serves 8.4 million customers across multiple states and has a total energy capacity of 54,800 megawatts [8] - The company is committed to a clean energy transition, aiming for net-zero methane emissions by 2030 and net-zero carbon emissions by 2050 [9]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Duke Energy despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Duke Energy is expected to report quarterly earnings of $1.73 per share, reflecting a year-over-year decrease of 10.8% [3]. - Revenue projections stand at $8 billion, indicating no growth compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 3.3% higher in the last 30 days, suggesting a reassessment by analysts [4]. - The Most Accurate Estimate for Duke Energy is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.55%, indicating a bearish outlook [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with positive readings being more predictive [7][8]. - Duke Energy's combination of a negative Earnings ESP and a Zacks Rank of 2 complicates predictions of an earnings beat [10]. Historical Performance - In the last reported quarter, Duke Energy exceeded earnings expectations by 16.83%, having beaten consensus EPS estimates three times over the last four quarters [11][12]. Industry Comparison - Avista, another player in the electric utility sector, is expected to report earnings of $0.14 per share, down 26.3% year-over-year, with revenues projected at $394.1 million, up 3.8% [16]. - Avista's consensus EPS estimate has been revised 12.6% lower, but a higher Most Accurate Estimate results in an Earnings ESP of 33.33%, indicating a likely earnings beat [17].

Core Points - Duke Energy Carolinas customers in South Carolina will experience a 12.7% decrease in electric rates starting November 1, 2024, as part of an annual adjustment for fuel costs [1][3] - The average monthly residential bill will drop from $154.29 to $134.77, reflecting a total decrease of $19.52 for customers using 1,000 kilowatt-hours (kWh) per month [2] - Commercial and industrial customers will see rate decreases of 13.5% and 15.7%, respectively, with individual impacts varying based on usage and customer profiles [2] Rate Adjustment Details - The decrease in rates more than offsets a previously announced base rate increase that took effect in August [3] - Duke Energy Carolinas serves approximately 660,000 households and businesses in the Upstate of South Carolina, including Greenville, Spartanburg, and Anderson counties [3] - The annual fuel cost-recovery filing is based on projected fuel costs and includes a true-up of the previous year's projections against actual costs incurred [4] Cost Drivers - The primary driver for this year's decrease is the reduced cost of natural gas compared to the previous year, along with a lower true-up component from the last fuel cost-recovery filing [5] - Duke Energy Carolinas actively manages fuel contracts to minimize costs for customers, ensuring that bills reflect actual fuel costs incurred by the company [5] Customer Support Programs - Duke Energy offers various assistance programs for customers struggling to pay their energy bills, including government and nonprofit programs, as well as the Share the Light Fund [6] - The company provides energy-saving tips and efficiency programs, such as the Home Energy House Call, to help customers manage their energy use and reduce monthly bills [7] Company Overview - Duke Energy Carolinas, a subsidiary of Duke Energy, has an energy capacity of 20,700 megawatts and serves 2.9 million customers across a 24,000-square-mile area in North and South Carolina [8] - Duke Energy is one of the largest energy holding companies in the U.S., serving 8.4 million customers and owning 54,800 megawatts of energy capacity [9] - The company is committed to a clean energy transition, aiming for net-zero methane emissions by 2030 and net-zero carbon emissions from electricity generation by 2050 [10]

Company Performance - Duke Energy's stock closed at $114, reflecting a -0.36% change from the previous day, underperforming the S&P 500's loss of 0.33% [1] - Over the past month, Duke Energy's stock has decreased by 1.56%, which is better than the Utilities sector's decline of 4.45% but worse than the S&P 500's increase of 1.83% [1] Upcoming Earnings - Duke Energy is scheduled to release its earnings report on November 7, 2024, with an expected EPS of $1.73, indicating a 10.82% decline year-over-year [2] - The consensus estimate for revenue is projected at $8 billion, showing a slight increase of 0.01% compared to the same quarter last year [2] Annual Forecast - For the full year, Zacks Consensus Estimates predict earnings of $5.98 per share and revenue of $30.37 billion, representing increases of +7.55% and +4.5% respectively compared to the previous year [3] Analyst Estimates and Rankings - Recent revisions to analyst estimates for Duke Energy are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [3] - The Zacks Rank system, which incorporates estimate changes, currently ranks Duke Energy as 2 (Buy), with a recent upward shift of 0.06% in the EPS estimate [5] Valuation Metrics - Duke Energy has a Forward P/E ratio of 19.14, which is higher than the industry's average Forward P/E of 17.13 [5] - The company has a PEG ratio of 3.12, compared to the Utility - Electric Power industry's average PEG ratio of 2.76 [6] Industry Context - The Utility - Electric Power industry, part of the broader Utilities sector, holds a Zacks Industry Rank of 102, placing it in the top 41% of over 250 industries [6] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Market Overview - U.S. stock markets are expected to close 2024 positively after a strong bull run in 2023, with major indexes showing year-to-date gains of 12.4% for the Dow, 22.8% for the S&P 500, and 25.7% for the Nasdaq Composite [2] - Historically, September and October are known as poor-performing months, but this year, all three major indexes posted gains in September, marking the first positive September for the S&P 500 since 2019 [3] Upcoming Market Influences - The U.S. Presidential Election on November 5 may lead to market volatility due to a close contest between Democrat Kamala Harris and Republican Donald Trump, with potential delays in results [5] - The Federal Reserve's FOMC meeting on November 6 and 7 could impact markets, as there is a 96.6% probability of a 25-basis point rate reduction, which may affect trading if the Fed does not cut rates or issues hawkish comments [6] - Geopolitical conflicts in the Middle East may lead to volatility in crude oil prices, creating economic turbulence globally and in the U.S. [7] Recommended Stocks - Investment in large-cap stocks with regular dividends is advised for stability during market volatility. Four stocks with favorable Zacks Rank are recommended: T. Rowe Price Group Inc., Duke Energy Corp., Philip Morris International Inc., and Regions Financial Corp. [4][8] Company Highlights T. Rowe Price Group Inc. (TROW) - TROW has a diverse business model with a 4.6% CAGR in assets under management (AUM) from 2019 to 2023, continuing to grow in the first half of 2024 [10] - 63% of TROW's U.S. mutual funds outperformed the Morningstar median over the past five years, with projected AUM growth of 9.4% CAGR through 2026 [11] - Expected revenue and earnings growth rates for TROW are 11.1% and 20.7%, respectively, with a current dividend yield of 4.46% [12] Duke Energy Corp. (DUK) - DUK plans to invest $73.4 billion from 2024 to 2028 to enhance its grid and renewable energy portfolio, having already reduced carbon emissions by 48% from 2005 levels [13] - The company is focusing on constructing low-emission generation facilities and has a settlement to advance pumped storage hydro projects [14] - Expected revenue and earnings growth rates for DUK are 4.5% and 7.6%, respectively, with a current dividend yield of 3.57% [15] Philip Morris International Inc. (PM) - PM is experiencing strong momentum in smoke-free products like IQOS and ZYN, with higher pricing and cost management benefiting its bottom line [16] - The company aims to become a majority smoke-free business by 2030, raising its 2024 revenue guidance to a 7.5-9% organic increase [17] - Expected revenue and earnings growth rates for PM are 6.7% and 8.3%, respectively, with a current dividend yield of 4.16% [18] Regions Financial Corp. (RF) - RF is expected to benefit from decent loan growth and the Fed's interest rate cuts, which will stabilize funding costs and support net interest income growth [19] - The company is focusing on strategic acquisitions and investments in talent and technology for future growth [19] - Expected revenue and earnings growth rates for RF are 5.4% and 9.2%, respectively, with a current dividend yield of 4.26% [20]

Market Overview - U.S. stock markets are expected to close 2024 positively after a strong bull run in 2023, with the Dow, S&P 500, and Nasdaq Composite up 12.4%, 22.8%, and 25.7% year-to-date, respectively [1] - Historically, September and October are poor-performing months, but this year, all three major indexes posted gains in September, with the S&P 500 achieving its first positive September since 2019 [2] Market Influencing Factors - The upcoming U.S. Presidential Election on November 5 may lead to market volatility due to potential delays in results caused by legal issues [5] - The Federal Reserve's FOMC meeting on November 6 and 7 is anticipated to influence market conditions, with a 96.6% probability of a 25-basis point rate cut, which could affect trading if the Fed adopts a hawkish stance [6] - Geopolitical tensions in the Middle East may impact crude oil prices and create economic turbulence globally, affecting U.S. markets [7] Recommended Investment Strategies - Investment in large-cap stocks with healthy financial conditions and regular dividend payments is advised to mitigate risks during potential market downturns [3][8] - Four recommended stocks with favorable Zacks Rank include T. Rowe Price Group Inc. (TROW), Duke Energy Corp. (DUK), Philip Morris International Inc. (PM), and Regions Financial Corp. (RF) [4][9] Company Insights T. Rowe Price Group Inc. (TROW) - TROW has a diverse business model supporting sustainable earnings, with a 4.6% CAGR in AUM over the past four years and a projected 9.4% CAGR through 2026 [10][11] - Expected revenue and earnings growth rates for the current year are 11.1% and 20.7%, respectively, with a current dividend yield of 4.46% [12] Duke Energy Corp. (DUK) - DUK plans to invest $73.4 billion from 2024 to 2028 to enhance its grid and renewable energy portfolio, achieving a 48% reduction in carbon emissions from 2005 levels [13] - Expected revenue and earnings growth rates for the current year are 4.5% and 7.6%, respectively, with a current dividend yield of 3.57% [15] Philip Morris International Inc. (PM) - PM is experiencing strong momentum in smoke-free products, with expectations of a 7.5-9% increase in net revenues for 2024 [16][17] - Expected revenue and earnings growth rates for the current year are 6.7% and 8.3%, respectively, with a current dividend yield of 4.16% [18] Regions Financial Corp. (RF) - RF is expected to benefit from decent loan growth and the Fed's interest rate cuts, with a focus on revenue diversification through strategic acquisitions [19] - Expected revenue and earnings growth rates for next year are 5.4% and 9.2%, respectively, with a current dividend yield of 4.26% [20]

Company Overview - Duke Energy's stock closed at $117.06, reflecting a -0.13% change from the previous day's closing price, underperforming the S&P 500's 0.27% gain [1] - The stock has increased by 1.07% over the past month, outperforming the Utilities sector's decline of 2.82% but lagging behind the S&P 500's 2% gain [1] Upcoming Financial Results - Duke Energy is set to announce its earnings on November 7, 2024, with an expected EPS of $1.73, indicating a 10.82% decrease from the same quarter last year [2] - Revenue is forecasted to be $8.08 billion, representing a 1.08% increase compared to the year-ago quarter [2] Full Year Projections - For the full year, earnings are projected at $5.98 per share and revenue at $30.37 billion, reflecting increases of +7.55% and +4.5% respectively from the previous year [3] - Changes in analyst estimates for Duke Energy are crucial as they often indicate shifts in short-term business dynamics, with positive revisions seen as favorable for the company's outlook [3] Zacks Rank and Performance - Duke Energy currently holds a Zacks Rank of 2 (Buy), with the Zacks Consensus EPS estimate having increased by 0.06% over the past month [5] - The Zacks Rank system has a strong historical performance, with 1 ranked stocks yielding an average annual return of +25% since 1988 [5] Valuation Metrics - Duke Energy's Forward P/E ratio stands at 19.61, which is higher than the industry's average Forward P/E of 17.24 [6] - The company has a PEG ratio of 3.2, compared to the Utility - Electric Power industry's average PEG ratio of 2.75 [6] Industry Context - The Utility - Electric Power industry is ranked 86 in the Zacks Industry Rank, placing it in the top 35% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Analyst recommendations, particularly the Average Brokerage Recommendation (ABR) for Duke Energy (DUK), suggest a strong buy sentiment, but reliance solely on these ratings may not be prudent due to potential biases from brokerage firms [1][2]. Group 1: Analyst Recommendations - Duke Energy has an ABR of 1.95, indicating a recommendation between Strong Buy and Buy, based on 20 brokerage firms' assessments [1]. - Out of the 20 recommendations, 10 are classified as Strong Buy (50%) and 1 as Buy (5%) [1]. - Studies indicate that brokerage recommendations often show limited success in guiding investors towards stocks with the highest price increase potential [2]. Group 2: Comparison with Zacks Rank - Zacks Rank categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, making it a more effective indicator of near-term stock performance compared to ABR [3][5]. - The ABR is calculated from brokerage recommendations and can be outdated, while Zacks Rank reflects timely earnings estimate revisions [4][6]. - The Zacks Consensus Estimate for Duke Energy has increased by 0.1% to $5.98, indicating positive sentiment among analysts regarding the company's earnings prospects [7]. Group 3: Investment Implications - The Zacks Rank for Duke Energy is 2 (Buy), suggesting that the stock may perform well in the near term due to favorable earnings estimate revisions [7]. - The ABR for Duke Energy can serve as a supplementary guide for investors, but it should be validated with other research tools like Zacks Rank for better investment decisions [7].