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].

Core Insights - Duke Energy has launched the Green Source Advantage Choice (GSA-C) program in North Carolina, enabling large businesses to access 100% renewable energy and support renewable energy development [1][2] - The GSA-C program expands upon the original Green Source Advantage program, increasing capacity to 5,000 megawatts (MW), which is over five times the previous capacity [1][3] - The program is fully funded by participating customers and offers flexibility in selecting renewable suppliers and negotiating price terms [2][3] Program Features - GSA-C includes options such as the "Bring Your Own Purchased Power Agreement" (PPA) with 250 MW of capacity annually and the Resource Acceleration Option (RAO) providing an additional 300 MW every two years [3] - Customers can collaborate with Duke Energy on new renewable facilities, which can be either Duke-generated or third-party operated [3] - The program allows customers to secure clean energy environmental attributes (CEEAs), which include renewable energy certificates and carbon emission reduction attributes [2][4] Future Developments - Duke Energy plans to file a subscription-based community solar program called Clean Energy Connection with the North Carolina Utilities Commission later this year [4] - Similar renewable energy programs are also being implemented in South Carolina [4] - The company is committed to achieving net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050 [5]

Core Insights - Duke Energy Florida has restored power for over 99% of customers affected by Hurricane Milton, with remaining outages reduced from over 1 million to approximately 3,000 [1][2] - The company is committed to maintaining high levels of service and communication with customers during the restoration process [2] - Duke Energy Florida operates with a significant energy capacity of 12,300 megawatts, serving 2 million customers across a 13,000-square-mile area [4] Restoration Efforts - Thousands of crews are actively working to restore power to the remaining customers, particularly in Pasco and Pinellas counties where damage was most severe [1][2] - The company may adjust estimated restoration times due to challenges in accessing damaged areas, but customers will receive regular updates [2] Company Overview - Duke Energy is one of America's largest energy holding companies, serving 8.4 million customers across multiple states and owning a total energy capacity of 54,800 megawatts [5] - The company is focused on a clean energy transition, aiming for net-zero methane emissions by 2030 and net-zero carbon emissions by 2050 [5]

Core Viewpoint - Duke Energy's systematic investments in modernizing infrastructure and expanding its renewable generation portfolio are expected to enhance operational reliability, making it a strong investment option in the Utility sector [1] Group 1: Growth Projections - The Zacks Consensus Estimate for Duke Energy's 2024 earnings per share is $5.97, indicating a year-over-year growth of 7.4% [2] - The consensus estimate for 2024 sales is $30.42 billion, reflecting a year-over-year growth of 4.7% [2] - The company's long-term earnings growth rate is projected at 6.1% [2] - Duke Energy has a positive earnings surprise history, with an average trailing four-quarter earnings surprise of 4.88% [2] Group 2: Solvency - The time-to-interest earned ratio at the end of Q2 2024 was 2.61, indicating the company's ability to meet future interest obligations without difficulties [3] Group 3: Dividend Yield - Duke Energy has consistently paid dividends, with a current dividend yield of 3.49%, outperforming the Zacks S&P 500 composite's yield of 1.22% [4] Group 4: Systematic Investments - Duke Energy is focused on expanding operations, implementing modern technologies, and enhancing its renewable generation portfolio, with expected investments ranging from $170 billion to $180 billion over the next 10 years [5] - The company projects an investment of $73.4 billion during the 2024-2028 period [5] Group 5: Stock Performance - Over the past six months, Duke Energy's stock has gained 27.3%, compared to the industry's growth of 22.2% [6]

Core Points - Duke Energy Florida has restored over 99% of power in Pasco County and other areas affected by Hurricane Milton, with remaining outages now concentrated in Pinellas County [1][2] - Total storm-related outages have decreased from over 1 million to approximately 30,000 [2] - The remaining outages are often linked to equipment damage affecting fewer than 25 customers, requiring extensive work from crews to restore power [3][4] Company Overview - Duke Energy Florida owns 12,300 megawatts of energy capacity, serving 2 million customers across a 13,000-square-mile area in Florida [7] - Duke Energy, a Fortune 150 company, serves 8.4 million customers across multiple states and has a total energy capacity of 54,800 megawatts [8] Clean Energy Transition - Duke Energy is focused on a clean energy transition, aiming for net-zero methane emissions from its natural gas operations by 2030 and net-zero carbon emissions from electricity generation by 2050 [9] - The company is investing in electric grid upgrades and cleaner energy sources, including renewables and energy storage [9]