Earnings estimates for Dominion Energy Inc. (D - Free Report) have been revised upward over the past 30 days, reflecting analysts’ optimism surrounding the stock. The Zacks Consensus Estimate for 2019 earnings has moved up 0.7% to $4.30 during the said period.
Dominion Energy, together with its subsidiaries, produces and transports energy in the United States.
Let’s focus on the factors that make Dominion Energy a good investment option at the moment.
In the past six months, Dominion Energy’s shares have gained 6.1% compared with the industry’s growth of 2.8%.
Earnings Surprise Trend & Estimate Revision
Dominion Energy delivered a positive surprise in the last four reported quarters, with the average beat being 6.99%. Its earnings estimates for 2019 moved up 5.43% year over year to $4.30 per share.
Return on Equity (ROE)
Dominion Energy’s ROE of 13.24%, compared with the industry average of 9.35%, indicates the company’s efficiency in utilizing its shareholder’s funds.
Long-Term Growth and Dividend Yield
The company’s long-term earnings (3-5 years) growth is pegged at 6.36%, courtesy of its improvement via organic operations and pursuing strategic inorganic opportunities. Dominion Energy recently completed the acquisition of SCANA Corporation, which will further expand its operation in the east coast and be accretive to earnings.
The current dividend yield of the company is 4.63%, better than its industry average of 3.23%.
Zacks Rank & Other Key Picks
Dominion Energy currently carries a Zacks Rank #2 (Buy). You can see tthe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other top-ranked stocks from the same industry include NextEra Energy, Inc. (NEE - Free Report) , Sempra Energy (SRE - Free Report) and Pinnacle West Capital Corporation (PNW - Free Report) , each holding a Zacks Rank of 2.
NextEra Energy pulled off average earnings surprise of 1.7% in the last four reported quarters. The Zacks Consensus Estimate for 2019 earnings has been revised 0.3% upward to $8.36 over the past 90 days.
Sempra Energy reported positive earnings surprise in three out of the trailing four quarters, resulting in average of 4.97%. The Zacks Consensus Estimate for 2019 earnings moved 0.2% north to $6.07 over the past 60 days.
Pinnacle West Capital came up with positive earnings surprise in three out of the trailing four quarters, with the average being 6.15%. The Zacks Consensus Estimate for 2019 earnings moved 2.5% north to $4.84 over the past 90 days.
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