PPL Corporation: A Strong Performer Amid Market Trends
PPL Corporation (PPL), located in Allentown, Pennsylvania, provides electricity and natural gas to approximately 3.60 million customers. With a market capitalization of $24.5 billion, this company runs power plants and distributes natural gas in Kentucky and Rhode Island. Moreover, PPL generates electricity from its facilities in Kentucky.
Impressive Stock Performance
Over the past year, PPL’s stock has shown a slight advantage over the overall market. Shares have increased by 30.6%, while the S&P 500 Index ($SPX) rose by nearly 30.4%. In 2024, PPL’s stock has climbed 24.4%, slightly outpacing SPX’s 23.1% gain year-to-date.
Comparison With Utility Sector
Delving deeper, PPL has also outperformed the Utilities Select Sector SPDR Fund (XLU), which has seen a gain of about 28.3% over the same period.
Quarterly Earnings Report
On November 1, PPL shares fell by 3.1% following the release of its Q3 earnings. The company reported an adjusted profit of $0.42 per share, outpacing Wall Street’s expectation of $0.39. Revenue for the quarter stood at $2.07 billion, and PPL retained its full-year earnings guidance, projecting between $1.67 and $1.73 per share.
Positive Earnings Growth Forecast
For the current fiscal year ending in December, analysts predict that PPL’s earnings per share (EPS) will grow 7.5% to $1.72 on a diluted basis. Notably, PPL has consistently exceeded earnings expectations in the last four quarters.
Analyst Ratings Overview
Among the 14 analysts covering PPL, the consensus rating is a “Moderate Buy,” which includes eight “Strong Buy” ratings, two “Moderate Buys,” and four “Holds.” This is a slight increase in optimism compared to two months ago when only seven analysts recommended a “Strong Buy.”
Market Insights and Future Projections
On November 4, Bank of America Corporation (BAC) raised its price target for PPL to $35 from $34 while maintaining a “Buy” rating. Analysts expressed surprise at the lack of positive market reaction following PPL’s Q3 update, which included in-line earnings, narrowed EPS guidance for FY24, and encouraging comments about growth opportunities, such as investments in data centers.
The average price target for PPL stands at $35.43, indicating a potential upside of 5.1% from current levels. The highest target on the Street is $39, which suggests a significant upside potential of 15.7%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data provided in this article are solely for informational purposes. For more details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are the author’s and do not necessarily reflect those of Nasdaq, Inc.
