12 Best Utility Stocks to Buy Now According to Hedge Funds

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6. Duke Energy Corporation (NYSE:DUK)

Number of Hedge Fund Holders: 55

Duke Energy Corporation (NYSE:DUK) engages in the distribution of natural gas and energy-related services. The company owns and operates a diverse mix of regulated power plants – including hydro, nuclear, solar, battery storage, etc.

On June 24, Morgan Stanley bumped up its price recommendation on Duke Energy Corporation (NYSE:DUK) from $132 to $136, while reaffirming an ‘Equal Weight’ rating on the shares. The revision implies an upside potential of 6% from the current share price.

The move comes after the analyst firm adjusted its targets for the North American Regulated & Diversified Utilities / IPPs as part of its monthly sector review. Morgan Stanley highlighted that the utilities sector fell by 5.5% in May, significantly trailing the gains of around 5.1% posted by the overall S&P during the month.

Duke remains on track to achieve its EPS guidance range of $6.55 to $6.80 for full-year 2026. The utility also reiterated its long-term target to deliver an EPS growth rate 5% to 7% through 2030.

While we acknowledge the potential of DUK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DUK and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Utility Stocks to Buy Now According to Hedge Funds.

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