PPL Should I Buy
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BUY now. PPL is in a technically bullish trend (stacked moving averages) and is trading close to first support (~35.77), giving a favorable near-term entry for an impatient buyer. Options positioning is net-bullish on open interest (put/call 0.48), suggesting investors are still leaning constructive despite today’s mild pullback. The main near-term catalyst is upcoming Q4 2025 earnings (Feb 12 pre-market), which can re-rate the stock if guidance is steady-to-improving.
Trend/structure: Bullish overall with SMA_5 > SMA_20 > SMA_200, indicating an established uptrend. Momentum: MACD histogram is positive (0.0821) but contracting—uptrend is intact yet momentum is cooling. RSI(6) ~50.45 is neutral, consistent with consolidation rather than a breakout. Levels: Pivot 36.427 is above current price (36.045), so the stock is slightly below the pivot; first support is S1 35.773 (nearby) then S2 35.37. Resistance levels sit at 37.08 (R1) and 37.483 (R2). Practical read: a buy near 36.0 with the thesis that support holds offers decent upside back to 37.1–37.5 if the broader tape stabilizes, but a clean break below ~35.77 would weaken the immediate setup.
Upcoming earnings event (Q4 2025 earnings on 2026-02-12 pre-market) can serve as an upside catalyst if guidance and rate-case commentary are favorable.
Street narrative still includes upside optionality from regulated growth / generation opportunities (noted by Wells Fargo) and broader utility re-rating if growth visibility improves.
Options open-interest skew (P/C 0.
points to investors maintaining a constructive medium-term posture.
Near-term trading odds from the provided pattern study lean slightly negative over the next week (-2.02%), implying potential chop/pullback risk before a cleaner move.
Momentum is cooling (MACD histogram contracting) and price is below the pivot (36.427), so it may need time to regain upside traction.
Analyst price targets have been trimmed by multiple firms recently (regulatory/rate-case and group-level target adjustments), which can cap enthusiasm until earnings/guidance resolves uncertainty.
Latest reported quarter: 2025/Q3. Growth was solid: Revenue $2.239B (+8.37% YoY), Net Income $318M (+49.30% YoY), EPS $0.43 (+48.28% YoY). The key blemish was profitability mix: Gross margin 56.05%, down -3.41% YoY. Overall, the quarter shows strong earnings acceleration despite margin pressure—supportive for the stock if the company can defend margins and sustain regulated growth into Q4/Q1 updates.
Recent trend: price targets have generally drifted lower (Barclays to $37 from $40; UBS to $36 from $38; JPM to $40 from $43; Wells Fargo to $41 from $45 after previously raising to $45), but core stances are mostly not outright bearish—Morgan Stanley remains Overweight with a $40 target (raised from $38), and Wells Fargo remains Overweight. Wall Street pros: (a) Overweight ratings suggest perceived upside from rate-case outcomes and longer-run growth opportunities; (b) targets clustered around ~$37–$41 imply modest upside from ~$36. Cons: (a) repeated target cuts reflect lingering uncertainty and a need for clearer execution/rate-case visibility; (b) Neutral/Equal Weight voices (UBS/Barclays) suggest upside may be incremental rather than dramatic. Influential trading: No notable hedge fund/insider trend (both neutral) and no recent Congress trading data available.
