Duke Energy (NYSE: DUK) bulls got a major kickoff recently after reports of a potential takeover by NextEra Energy (NYSE: NEE) emerged. Duke shares soared on the news given NextEra's clout in the utility sector: It's the world's largest publicly listed utility, with a market capitalization more than twice Duke's.
The drama didn't last long, however. Duke promptly rebuffed NextEra's proposal and the latter quickly ruled out hostile takeovers. That's left investors with a lingering question: Is Duke stock worth buying at its current price? Yes, if you must, but buy this utility stock for better reasons than speculation about a potential merger or acquisition.
Stable revenue and cash flows are high on a long-term investor's priority list when picking a stock. Duke easily passes the test: It's a 95% regulated electric and gas utility.
Source Fool.com