If you're thinking of investing in Duke Energy Corp. (NYSE: DUK) stock this year, you should know what you're buying.
Duke Energy is one of the largest electric power companies in the United States, providing electricity to 7.7 million customers across six states.
As such, it has a relatively large market capitalization and is well-known to investors.
But there are still things to consider before investing in Duke Energy stock.
Let's take a closer look at some key facts, figures and DUK's Stock Power Ratings.
Duke Energy's Financial Performance
The first thing to understand about Duke Energy is its financial performance over the past few years.
In 2021, Duke reported total revenues of $24 billion, with an operating income of $8 billion and net income of $6 billion.
This was up from 2020 when the company reported total revenues of $22 billion, with an operating income of $7 billion and net income of $5 billion.
This indicates that while revenues are not increasing significantly year on year, profits are rising steadily — which is a good sign for investors looking for long-term returns.
Duke Energy's Growth Potential
Another thing to consider when investing in any stock is growth potential — and Duke Energy has plenty of it.
For example, due to its size and position as one of the largest electric power companies in the U.S., it has significant opportunities for expansion into new markets.
It also has strong partnerships with other energy providers such as solar or wind farms, giving it access to renewable energy sources that can help reduce emissions and boost its sustainability credentials further still.
All these factors make it attractive for those looking for long-term investment options with plenty of growth potential.
Risks Involved With Investing in Duke Energy Stock
Of course, no investment comes without risks — and this applies just as much to Duke Energy stock as it does any other investment option out there right now.
The most obvious risk is that electricity prices could drop significantly in future years due to increased competition or changes in demand from consumers.
There's also the risk that new technologies could disrupt existing business models or lead to reduced demand for certain types of energy services (e.g. battery storage).
DUK Stock Power Ratings
Duke Energy stock scores a 51 out of 100 on our proprietary Stock Power Ratings system.
That means we are 'Neutral' on the stock and expect it to perform in line with the broader market over the next 12 months.
DUK Stock Power Ratings in December 2022.
DUK earns its highest mark on our volatility factor … scoring an 84.
This means the stock is considered to be less volatile than most of the stocks we rate.
It also scores a 71 on our growth factor.
The company's trailing 12-month sales growth rate is 13.8% and its earnings-per-share growth rate is 27.8%.
DUK's $78.4 billion market cap makes it one of the larger companies we rate … earning it a 2 on our size factor.
The bottom line: If you're considering investing in Duke Energy stock this year, there are certainly some factors worth considering beforehand — including its financial performance over recent years as well as potential growth opportunities ahead and risks involved.
You want to examine this data along with our Stock Power Ratings system before making any decisions about investing.