How Is PPL Corporation's Stock Performance Compared to Other Utilities Stocks?

PPL Corporation (PPL), headquartered in Allentown, Pennsylvania, provides electricity and natural gas to approximately 3.6 million customers. Valued at $25 billion by market cap, the company generates electricity at power plants and markets wholesale and retail energy and natural gas. It also delivers natural gas to customers in Kentucky and Rhode Island and generates electricity from power plants in Kentucky.

Companies worth $10 billion or more are generally described as “large-cap stocks.” PPL effortlessly fits that bill, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the utilities - regulated electric industry. PPL's strengths include its stable, regulated business model, providing predictable revenue and reasonable returns, along with a diversified presence. Its resilient segments, including regulated electricity and gas distribution operations in Kentucky and large customer bases in Pennsylvania and Rhode Island, contribute to financial stability.

Despite its notable strength, PPL slipped 11.7% from its 52-week high of $38.27, achieved on Oct. 16. Over the past three months, PPL stock has declined 5.4%, underperforming the Utilities Select Sector SPDR Fund’s (XLU) 2.8% gains during the same time frame.

In the longer term, shares of PPL fell marginally on a six-month basis but climbed 2% over the past 52 weeks, underperforming XLU’s six-month gains of 6% and 8.7% returns over the last year.

To confirm the bearish trend, PPL has been trading below its 200-day moving average recently. The stock has been trading below its 50-day moving average since mid-November, experiencing minor fluctuations. 

On Nov. 5, PPL shares closed up marginally after reporting its Q3 results. Its adjusted EPS of $0.48 exceeded Wall Street expectations of $0.46. The company’s revenue was $2.24 billion, exceeding Wall Street's $2.17 billion forecast. PPL expects full-year adjusted EPS in the range of $1.78 to $1.84.

In the competitive arena of utilities - regulated electric, Eversource Energy (ES) has taken the lead over PPL, showing resilience with a 3.3% uptick on a six-month basis and 12.6% gains over the past 52 weeks.

Wall Street analysts are reasonably bullish on PPL’s prospects. The stock has a consensus “Moderate Buy” rating from the 16 analysts covering it, and the mean price target of $40.93 suggests a potential upside of 21.1% from current price levels.