DUK - Duke Energy: This Blue-Chip Utility Is Worth Another Look
2024-05-08 07:30:00 ET
Summary
- I generally like to own businesses that I can easily understand, and it doesn't get much simpler than electric and gas utilities.
- Duke Energy's operating revenue and adjusted EPS climbed higher in the first quarter.
- The company's interest coverage and debt-to-capital ratios are sound enough to earn a BBB+ credit rating from S&P on a stable outlook.
- Shares of DUK may be trading at a 7% discount to fair value.
- The electric and gas utility could be set up for attractive medium-term total returns.
In investing, there is no shortage of lessons to be learned over a lifetime to those who are willing to learn them. The best lessons are probably those that are learned at the University of Hard Knocks.
However, that's not to knock the lessons that can be learned from the wisdom of the all-time greats. The former fund manager of Fidelity's Magellan Fund, Peter Lynch, is one such individual. As a refresher, under the direction of Mr. Lynch, the Magellan Fund earned 29.2% compound annual total returns from 1977 to 1990....
Duke Energy: This Blue-Chip Utility Is Worth Another Look