10 Most Undervalued Utility Stocks to Invest in Now

4. Duke Energy Corporation (NYSE:DUK)

Forward P/E as on March 4: ~18.4x

Number of Hedge Fund Holders: 62

Duke Energy Corporation (NYSE:DUK) operates as an energy company. James Thalacker from BMO Capital maintained a “Buy” rating on the company’s stock with a price objective of $123.00. The analyst’s rating is backed by factors highlighting current challenges and future potential. Despite uncertainties due to a softer outlook for 2025, higher operational and maintenance costs, and storm-related contingencies, the analyst has recognized long-term growth prospects beyond 2027. The analyst has lauded Duke Energy Corporation (NYSE:DUK)’s manageable equity financing requirements and financial flexibility, which are strengthened by a robust regulated asset base and stable financial forecasts.

Duke Energy Corporation (NYSE:DUK)’s strategic emphasis on renewable development, execution of Clean Energy Plan, and the benefits due to regulatory frameworks in North Carolina continue to support the analyst’s rating. Such factors, together with a derisked regulatory calendar and projected demand growth, continue to paint a favourable outlook for the company. Elsewhere, Jefferies upped Duke Energy Corporation (NYSE:DUK)’s price objective to $132 from $129, keeping a “Buy” rating. The broad-based growth in the utilities sector, thanks to the push for cleaner energy and higher electricity demand, is anticipated to support the company as it invests in renewable energy projects, grid modernization and infrastructure upgrades.