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Why Dominion Energy (D) Outpaced the Stock Market Today

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Dominion Energy (D - Free Report) closed the most recent trading day at $45.09, moving +0.9% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.23%. Meanwhile, the Dow experienced a rise of 0.37%, and the technology-dominated Nasdaq saw an increase of 0.07%.

Heading into today, shares of the energy company had lost 8.81% over the past month, lagging the Utilities sector's loss of 5.83% and the S&P 500's gain of 5.3% in that time.

The investment community will be paying close attention to the earnings performance of Dominion Energy in its upcoming release. The company is slated to reveal its earnings on February 22, 2024. In that report, analysts expect Dominion Energy to post earnings of $0.40 per share. This would mark a year-over-year decline of 62.26%. Our most recent consensus estimate is calling for quarterly revenue of $3.81 billion, down 22.54% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Dominion Energy. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.47% downward. Dominion Energy is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Dominion Energy is currently exchanging hands at a Forward P/E ratio of 14.58. This valuation marks a premium compared to its industry's average Forward P/E of 14.08.

One should further note that D currently holds a PEG ratio of 1.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. D's industry had an average PEG ratio of 2.51 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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