Duke Energy Corporation (DUK) Roof Leaking Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Duke Energy Corporation as such a stock due to the following factors:
- DUK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $321.8 million.
- DUK has traded 715,584 shares today.
- DUK is trading at 1.55 times the normal volume for the stock at this time of day.
- DUK crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.
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More details on DUK:
Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States and Latin America. It operates through three segments: Regulated Utilities, International Energy, and Commercial Power. The stock currently has a dividend yield of 4%. DUK has a PE ratio of 22.7. Currently there are 4 analysts that rate Duke Energy Corporation a buy, 1 analyst rates it a sell, and 9 rate it a hold.
The average volume for Duke Energy Corporation has been 3.5 million shares per day over the past 30 days. Duke Energy has a market cap of $55.6 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.28 and a short float of 1.2% with 2.04 days to cover. Shares are down 6% year-to-date as of the close of trading on Friday.
Analysis:
rates Duke Energy Corporation as a
. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Net operating cash flow has slightly increased to $1,419.00 million or 1.93% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -15.53%.
- DUKE ENERGY CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, DUKE ENERGY CORP reported lower earnings of $3.47 versus $3.63 in the prior year. This year, the market expects an improvement in earnings ($4.66 versus $3.47).
- DUK, with its decline in revenue, underperformed when compared the industry average of 9.4%. Since the same quarter one year prior, revenues slightly dropped by 9.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electric Utilities industry. The net income has significantly decreased by 85.9% when compared to the same quarter one year ago, falling from $688.00 million to $97.00 million.
- You can view the full Duke Energy Corporation Ratings Report.
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