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Dominion Energy (D) Rises But Trails Market: What Investors Should Know

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The latest trading session saw Dominion Energy (D - Free Report) ending at $57.37, denoting a +0.46% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 1.16%. Elsewhere, the Dow gained 1.2%, while the tech-heavy Nasdaq added 1.16%.

Prior to today's trading, shares of the energy company had gained 4.85% over the past month. This has outpaced the Utilities sector's gain of 4.39% and the S&P 500's gain of 3.48% in that time.

Market participants will be closely following the financial results of Dominion Energy in its upcoming release. The company is predicted to post an EPS of $0.96, indicating a 24.68% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.24 billion, indicating a 11.19% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.75 per share and revenue of $15.76 billion. These totals would mark changes of +38.19% and -3.86%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Dominion Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Dominion Energy possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Dominion Energy is presently trading at a Forward P/E ratio of 20.74. This signifies a premium in comparison to the average Forward P/E of 16.84 for its industry.

Meanwhile, D's PEG ratio is currently 1.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Utility - Electric Power was holding an average PEG ratio of 2.77 at yesterday's closing price.

The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 68, this industry ranks in the top 27% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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