Duke Energy(DUK) ZACKS·2024-10-30 11:00Market 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]