Back to top

Image: Bigstock

Why Dominion Energy (D) Outpaced the Stock Market Today

Read MoreHide Full Article

The most recent trading session ended with Dominion Energy (D - Free Report) standing at $56.93, reflecting a +1.26% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.77% for the day. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq appreciated by 0.87%.

The energy company's shares have seen a decrease of 3.34% over the last month, not keeping up with the Utilities sector's loss of 1.86% and the S&P 500's gain of 4.87%.

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 November 1, 2024. In that report, analysts expect Dominion Energy to post earnings of $0.93 per share. This would mark year-over-year growth of 20.78%. Simultaneously, our latest consensus estimate expects the revenue to be $4.1 billion, showing a 7.49% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.75 per share and revenue of $15.5 billion, which would represent changes of +38.19% and -5.46%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Dominion Energy. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.03% rise in the Zacks Consensus EPS estimate. As of now, Dominion Energy holds a Zacks Rank of #4 (Sell).

In the context of valuation, Dominion Energy is at present trading with a Forward P/E ratio of 20.42. This indicates a premium in contrast to its industry's Forward P/E of 17.27.

Investors should also note that D has a PEG ratio of 1.5 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Utility - Electric Power industry had an average PEG ratio of 2.73 as trading concluded yesterday.

The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 48, positioning it in the top 20% of all 250+ industries.

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

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Dominion Energy Inc. (D) - free report >>

Published in