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Why Dominion Energy (D) Dipped More Than Broader Market Today

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Dominion Energy (D - Free Report) closed at $59.40 in the latest trading session, marking a -1.95% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.13%. Meanwhile, the Dow experienced a drop of 0.27%, and the technology-dominated Nasdaq saw a decrease of 0.07%.

The energy company's shares have seen an increase of 0.3% over the last month, surpassing the Utilities sector's loss of 0.17% and falling behind the S&P 500's gain of 2.71%.

The upcoming earnings release of Dominion Energy will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.13, reflecting a 15.31% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.05 billion, indicating a 2.88% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.39 per share and a revenue of $15.24 billion, indicating changes of +22.38% and +5.43%, respectively, from the former year.

Any recent changes to analyst estimates for Dominion Energy should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Dominion Energy boasts a Zacks Rank of #3 (Hold).

Investors should also note Dominion Energy's current valuation metrics, including its Forward P/E ratio of 17.86. This valuation marks a discount compared to its industry average Forward P/E of 17.92.

Meanwhile, D's PEG ratio is currently 1.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Utility - Electric Power industry had an average PEG ratio of 2.69 as trading concluded yesterday.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% 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.

To follow D in the coming trading sessions, be sure to utilize Zacks.com.


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