Duke Energy "We think near-visibility (finally) to a merged DUK-PGN offers an attractive vehicle for large cap Regulated Utility exposure offering competitive EPS growth potential at 4-6% (with low end of synergies), a good dividend yield at 4.3%, a highly regulated business mix at 86% of earnings that dilutes legacy concerns about Duke's International / OH generation exposure, and ~1.0x P/E multiple discount that translates into an annualized rate of return of 10.1%," Credit Suisse analysts wrote in a June 11 report. Shares of Duke Energy hit a 52-week high on Monday of $23.40. The stock's 52-week low of $16.87 was set on Aug. 9. Duke Energy's forward P/E is 16.04; the average among its peers is 15.15. For comparison, American Electric Power ( AEP) has a lower forward P/E of 12.88. Fourteen of the 19 analysts who cover Duke Energy rated it hold. Four analysts gave the stock a buy rating and one rated it sell. The stock has risen 5.91% year to date.
PetSmart The pet retailer announced Monday that it is raising its quarterly dividend 18% to 16.5 cents a share. The company also said that it will repurchase $525 million of stock starting on July 30. "PetSmart remains one of our favorite names, as it continues to benefit fromfavorable industry trends, healthy cash flows and company initiatives to drive sales/margins," Bank of America Merrill Lynch analysts wrote in a report Monday. "With consistently solid performance, we reiterate our Buy rating." Shares of PetSmart hit a 52-week high on Monday of $68.14. The stock's 52-week low of $37.76. was set on Aug. 8. PetSmart's forward P/E was 23.78 times; the average among its peers is 21.16. Fourteen of the 25 analysts who cover PetSmart rated it hold; 11 analysts gave the stock a buy rating. The stock has risen 33.09% year to date.
Southern "We calculate our $44 PT by applying a 15.0x P/E multiple to our 2014E of$2.95," Deutsche Bank analysts wrote in a June 13 report. "Upside risks include faster-than-anticipated economic recovery in the Southeast, better-than-anticipated rate case outcomes, lower market interest rates, and lower financing requirements. Downside risks include weaker-than anticipated sales, negative rate case outcomes, and higher market interest rates." Shares of Southern hit a 52-week high on Monday of $48.45. The stock's 52-week low of $35.73 was set on Aug. 9. Southern's forward P/E is 19.35 times; the average among its peers is 15.48. For comparison, Entergy ( ETR) has a lower forward P/E of 9.98 times. Thirteen of the 23 analysts who cover Southern rated it hold. Five analysts gave the stock a buy rating and another five rated it sell. The stock has risen 4.28% year to date.
Dollar General "We have taken a fresh look at our Dollar General model and raised estimates(now at $2.82 for 2012, above the Street)," Deutsche Bank analysts wrote in a June 7 report. "Looking forward, we believe DG has multiple sales drivers in place that should provide robust growth and its 1H investments in its business (i.e. DC costs, advertising supporting for CA Rollout) should begin to pay dividends in 2H - allowing solid leverage within its business model as mgmnt continues to execute its LT strategy. Stay Long." Shares of Dollar General hit a 52-week high on Monday of $52.25. The stock's 52-week low of $29.84 was set on Aug. 8. Nineteen of the 25 analysts who cover Dollar General rated it buy; six analysts gave the stock a hold rating. The stock has risen 26.15% year to date.