Company Overview - Duke Energy Corporation is a utility company with a market cap of under $100 billion, operating the largest regulated nuclear portfolio in the United States [2]. Investment Strategy - The Value Portfolio focuses on building retirement portfolios through a fact-based research strategy, which includes analyzing 10Ks, analyst commentary, market reports, and investor presentations [2].

Core Insights - Duke Energy Corporation is recognized as one of the best nuclear power stocks to buy according to analysts [1][2] - The company operates 11 nuclear units across six sites in the Carolinas, which serve as its primary source of carbon-free energy generation [2][3] Investment Strategy - Duke Energy is considering the addition of large nuclear reactors to its existing 11-gigawatt fleet to address the increasing electricity demand in the Carolinas [3] - The company plans to study the implementation of large light-water reactors and small modular reactors, aiming for a 2037 in-service date for new nuclear generation [3] Financial Outlook - Duke Energy has initiated a five-year investment program totaling $83 billion to enhance its transmission and distribution network [4] - This investment is expected to support an earnings per share (EPS) growth rate of 5% to 7% through 2029 [4] - The company's business model is characterized by stable cash flows, supported by government-regulated rate structures, enabling it to maintain dividends for 99 consecutive years by mid-2025 [4]

Core Insights - Duke Energy (DUK) is consistently investing in infrastructure and expansion projects to enhance service reliability and is increasing its renewable generation portfolio, making it a solid investment option in the Zacks Utility Electric Power industry [1] Growth Outlook - The Zacks Consensus Estimate for DUK's 2025 earnings per share (EPS) is $6.32, reflecting a year-over-year increase of 7.1% [2] - The estimated revenues for DUK in 2025 are $31.76 billion, indicating a growth of 4.6% from the 2024 reported figure [2] - DUK's long-term earnings growth rate is projected at 6.6%, with an average earnings surprise of 3.12% over the last four quarters [2] Return to Shareholders - Duke Energy has been increasing shareholder value through consistent dividend payments, with a current quarterly dividend of $1.065 per share, leading to an annualized dividend of $4.26 and a dividend yield of 3.39% [3] Capital Deployment Plan - DUK plans to invest $190-$200 billion over the next decade, focusing on clean energy transition, with $87 billion earmarked for the 2025-2029 period [5] Renewable Expansion Initiatives - As of July 2025, Duke Energy operates 1,500 megawatts (MW) of solar capacity in Florida and plans to add 1,500 MW of solar capacity annually in the Carolinas and 900 MW annually in Florida starting in 2027 [6] - The company aims to add 6,700 MW of solar and 2,700 MW of battery energy storage in the Carolinas by 2031 [6] - DUK plans to introduce 1,200 MW of onshore wind by 2033 and 800-1,100 MW of offshore wind by 2034, with an additional 2,200-2,400 MW by 2035 [7] Solvency - Duke Energy's times interest earned (TIE) ratio at the end of Q2 2025 was 2.6, indicating the company's capacity to meet long-term debt obligations [10] Stock Price Performance - In the past month, Duke Energy shares have increased by 4.3%, outperforming the industry's growth of 2.9% [11]

Core Insights - The article emphasizes the importance of sales growth over earnings when evaluating stocks, suggesting that steady sales growth indicates strong demand and a durable business model [2][3][10] - A selection of stocks with robust sales growth and high cash balances is recommended, including StoneCo, Garmin, Assurant, VICI Properties, and Duke Energy, all of which show promising sales growth for 2025 [10][11][12][13][14][15] Sales Growth and Cash Flow - Sales growth is preferred over earnings as it reflects actual demand and provides visibility into a company's business model [3][5] - Constant sales growth leads to predictable cash flows, allowing companies to reinvest, expand, or return capital to shareholders without excessive debt reliance [5] Stock Selection Criteria - Stocks are shortlisted based on criteria such as 5-Year Historical Sales Growth greater than industry average and Cash Flow exceeding $500 million [6] - Additional metrics include a Price/Sales (P/S) Ratio lower than the industry average, positive changes in sales estimate revisions, operating margins above 5%, and Return on Equity (ROE) greater than 5% [7][8][9] Recommended Stocks - **StoneCo Ltd. (STNE)**: Expected sales growth of 9.8% for 2025, currently holds a Zacks Rank 1 [11] - **Garmin Ltd. (GRMN)**: Anticipated sales growth of 12.3% for 2025, currently holds a Zacks Rank 2 [12] - **Assurant Inc. (AIZ)**: Projected sales growth of 5.7% for 2025, currently holds a Zacks Rank 2 [13] - **VICI Properties Inc. (VICI)**: Expected sales growth of 4% for 2025, currently holds a Zacks Rank 2 [14] - **Duke Energy Corporation (DUK)**: Anticipated sales growth of 4.6% for 2025, currently holds a Zacks Rank 2 [15]

Core Viewpoint - Duke Energy (DUK) is positioned well to continue its trend of beating earnings estimates in the upcoming quarterly report, supported by a strong history of performance in the electric utility sector [1]. Group 1: Earnings Performance - Duke Energy has consistently surpassed earnings estimates, achieving an average beat of 7.87% over the last two quarters [2]. - In the most recent quarter, Duke Energy reported earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.19 per share by 5.04%. In the prior quarter, the company reported earnings of $1.76 per share against an expectation of $1.59 per share, resulting in a surprise of 10.69% [3]. Group 2: Earnings Estimates and Predictions - There has been a favorable shift in earnings estimates for Duke Energy, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [6]. - The current Earnings ESP for Duke Energy stands at +2.59%, reflecting increased analyst optimism regarding its near-term earnings potential. This positive ESP, combined with a Zacks Rank of 2 (Buy), suggests a strong likelihood of another earnings beat [9]. Group 3: Importance of Earnings ESP - Stocks that exhibit a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise, indicating a high probability of beating consensus estimates [7]. - The Earnings ESP metric is crucial for predicting earnings performance, as it compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the former being more reflective of recent analyst revisions [8].

Industry Overview - Nuclear energy is increasingly recognized as a crucial solution for meeting the growing global electricity demand while facilitating the transition to cleaner energy sources [2] - The nuclear industry is benefiting from regulatory reforms and advancements in technology, including microreactors and small modular reactors (SMRs) [3] - The International Energy Agency (IEA) projects that nuclear power supply will nearly double from 2020 to 2050, with significant growth expected in SMRs [5] Investment Opportunities - Nuclear energy-related stocks, such as BWX Technologies, Dominion Energy, and Duke Energy, are becoming attractive investment options due to their stable and reliable energy output [4] - Companies like Uranium Energy and BHP Group Limited are positioned to benefit from the increasing demand for uranium, essential for nuclear power plants [7] - The potential for significant growth in nuclear energy stocks is highlighted, with additional opportunities in companies like The Southern Company and NextEra Energy [8] Company Insights - BWX Technologies has secured a 10-year, $1.6 billion contract from the Department of Energy to support national security through the supply of high-purity depleted uranium [11] - Dominion Energy operates four nuclear power stations, generating nearly 40% of its total production, and is exploring next-generation nuclear technologies, particularly SMRs [12][13] - Duke Energy operates 11 nuclear units capable of producing approximately 10,700 megawatts of clean electricity, accounting for 27.5% of its total output in 2024 [15]

Core Insights - The amount of debt tied to artificial intelligence has reached $1.2 trillion, making it the largest segment in the investment-grade market, with AI companies now comprising 14% of the high-grade market, up from 11.5% in 2020 [1][2] - Companies linked to AI have experienced significant equity valuation increases since the launch of ChatGPT, raising concerns about potential selloffs if earnings from major tech firms decline [2][5] - Analysts noted that the growth in AI-related debt is justified due to the high quality of issuers, many of which are cash-rich or not highly leveraged [3][5] Debt Market Dynamics - Oracle's recent $18 billion bond sale attracted nearly $88 billion in investor demand, indicating strong interest in AI-related debt [4] - The competition among banks and private credit firms to underwrite debt deals for large data centers highlights the growing importance of AI in the financial sector [4] Credit Market Concerns - There are concerns among credit investors regarding the potential impact of a downturn in AI stock valuations on credit markets, although analysts believe these fears are not fundamentally justified [5] - A selloff in AI-related equities could still affect credit markets due to the tight trading conditions [5] - The suggestion of using select shorts in credit default swaps (CDS) as a hedge for cross-asset portfolios indicates a strategic approach to managing potential risks [6]

Core Points - Duke Energy will release its third-quarter 2025 financial results on November 7, 2025, at 7 a.m. ET [1] - An earnings conference call for analysts will take place on the same day at 10 a.m. ET, hosted by the CEO and CFO [1][2] - The company serves 8.6 million electric customers and 1.7 million natural gas customers across several states [3] - Duke Energy is focused on an ambitious energy transition, investing in electric grid upgrades and cleaner energy sources [4] Company Overview - Duke Energy is a Fortune 150 company headquartered in Charlotte, North Carolina [3] - The company has a total energy capacity of 55,100 megawatts [3] - It operates electric utilities in North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky, and natural gas utilities in North Carolina, South Carolina, Tennessee, Ohio, and Kentucky [3] Strategic Initiatives - The company is prioritizing customer reliability and value in its energy transition efforts [4] - Investments are being made in natural gas, nuclear, renewables, and energy storage [4]

Core Insights - Duke Energy is exploring the addition of large nuclear reactors to its energy portfolio as part of a long-term strategy to address increasing energy demands [1] - The company is also considering extending the operational life of certain coal plants to enhance energy supply stability [1] Group 1 - Duke Energy's long-term energy plan is driven by sharply rising energy needs [1] - The potential inclusion of nuclear reactors indicates a shift towards more sustainable energy sources [1] - Extending the life of coal plants reflects a transitional approach to energy generation while balancing current supply challenges [1]

Core Insights - Companies with a strong history of dividend payments and increases are attractive to income-focused investors, with Fifth Third Bancorp, Merck, and Duke Energy recently announcing dividend hikes [1] Fifth Third Bancorp - Fifth Third Bancorp has increased its dividends for nine consecutive years, with a recent hike of 8% to $0.40 per share, translating to an annual payout of $1.60 per share [3] - The current dividend yield for Fifth Third Bancorp is 3.53% [3] - The company's annual revenue as of June 30 was $8.45 billion, with Q2 2025 revenues of $2.25 billion and EPS of $0.90, both exceeding consensus estimates [3] Merck - Merck has raised its dividends for 14 consecutive years, with the latest increase from $0.77 to $0.81 per share, equating to an annual payout of $3.24 per share [5] - The current dividend yield for Merck is 4.18% [5] - Merck's annual revenue as of June 30 was $63.62 billion, with Q2 2025 revenues of $15.81 billion, slightly missing consensus estimates, while EPS of $2.13 surpassed expectations [6] Duke Energy - Duke Energy has consistently raised its dividends for 18 years, with the latest increase from $1.045 to $1.065 per share, resulting in an annual payout of $4.26 per share [8] - The current dividend yield for Duke Energy is 3.48% [8]