Based in Allentown, Pennsylvania, PPL Corporation (PPL) is a major player in the energy sector, delivering electricity and natural gas to over 3.6 million customers across the United States. With a robust market cap of $23.3 billion, PPL operates under various segments including Kentucky Regulated, Pennsylvania Regulated, Rhode Island Regulated, and Corporate & Other.
Being classified as a “large-cap stock,” PPL’s substantial market cap indicates its significant influence and presence in the regulated electric market, highlighting its role in the industry.
PPL’s Recent Performance: A Three-Year Peak and Market Comparison
On November 29, PPL shares reached a three-year high of $35.15, but are presently trading 8.9% lower than this peak. Over the past three months, PPL stock has shown slight gains, lagging behind the S&P 500 Index, which posted a 2.7% increase during the same period.
Year-Long Trends and Market Comparisons
PPL’s stock has also underperformed compared to the broader market in the long term. Year-to-date, PPL shares have increased by 18.2%, and over the past 52 weeks, the gain is 19.1%. In contrast, the S&P 500 has yielded a 23% return during the same timeframe.
Encouragingly, PPL’s stock has traded above its 200-day moving average since mid-February, although it recently slipped below the 50-day moving average as of December.
Q3 Earnings Report: Mixed Results
Following the release of its Q3 earnings on November 1, PPL stock dipped by 3.1%. In Pennsylvania and Kentucky, electricity sales increased by 1.5% year-over-year, totaling 17,738 gigawatt-hours. This led to a 1.1% rise in operating revenues, reaching $2.1 billion, though this figure fell short of Wall Street’s expectations by 2.1%. Due to higher interest, fuel, and other operating costs, the adjusted earnings per share (EPS) decreased by 2.3% year-over-year to $0.42, while still surpassing analyst projections by 7.7%.
Future Outlook: Growth Investments and Analyst Sentiment
On a more optimistic note, PPL reaffirmed its EPS and dividend growth forecast of 6% to 8% through 2027. The company plans to invest over $3 billion in infrastructure enhancements in 2024, aimed at reinforcing the grid’s resilience against future storm impacts.
PPL’s performance has outshone that of its competitor, Consolidated Edison, Inc. (ED), which has seen a 2.1% YTD decline and a 1.4% drop over the preceding year.
Among 15 analysts covering PPL stock, the consensus rating is a “Moderate Buy.” The average price target of $35.73 suggests an 11.6% upside from current levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
