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Dominion Energy (D) Gains But Lags Market: What You Should Know

Zacks Equity Research
·3-min read

Dominion Energy (D) closed at $82.69 in the latest trading session, marking a +0.41% move from the prior day. This move lagged the S&P 500's daily gain of 0.45%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.52%.

Heading into today, shares of the energy company had lost 4.78% over the past month, lagging the Utilities sector's loss of 2.49% and the S&P 500's gain of 2.08% in that time.

Wall Street will be looking for positivity from D as it approaches its next earnings report date. The company is expected to report EPS of $0.83, up 7.79% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4 billion, up 0.63% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.33 per share and revenue of $17.40 billion, which would represent changes of +2.12% and +5.02%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for D. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. D is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, D currently has a Forward P/E ratio of 19.02. For comparison, its industry has an average Forward P/E of 17.52, which means D is trading at a premium to the group.

Investors should also note that D has a PEG ratio of 4.02 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Utility - Electric Power was holding an average PEG ratio of 3.46 at yesterday's closing price.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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


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