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Why Dominion Energy (D) Outpaced the Stock Market Today

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In the latest close session, Dominion Energy (D - Free Report) was up +1.11% at $59.24. The stock outperformed the S&P 500, which registered a daily gain of 0.19%. Meanwhile, the Dow experienced a rise of 0.66%, and the technology-dominated Nasdaq saw a decrease of 0.03%.

The energy company's shares have seen a decrease of 2.09% over the last month, surpassing the Utilities sector's loss of 3.25% and falling behind the S&P 500's gain of 0.54%.

The investment community will be paying close attention to the earnings performance of Dominion Energy in its upcoming release. It is anticipated that the company will report an EPS of $0.7, marking a 20.69% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $3.69 billion, up 8.53% from the year-ago period.

D's full-year Zacks Consensus Estimates are calling for earnings of $3.4 per share and revenue of $15.68 billion. These results would represent year-over-year changes of +22.74% and 0%, respectively.

Investors should also note any recent changes to analyst estimates for Dominion Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.09% rise in the Zacks Consensus EPS estimate. Right now, Dominion Energy possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Dominion Energy is currently being traded at a Forward P/E ratio of 16.26. For comparison, its industry has an average Forward P/E of 16.92, which means Dominion Energy is trading at a discount to the group.

It is also worth noting that D currently has a PEG ratio of 1.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Utility - Electric Power was holding an average PEG ratio of 2.48 at yesterday's closing price.

The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 75, this industry ranks in the top 31% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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