In the latest trading session, Dominion Energy (D) closed at $57.43, marking a +0.12% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.01%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.97%.
Heading into today, shares of the energy company had gained 6.05% over the past month, outpacing the Utilities sector's gain of 5.17% and lagging the S&P 500's gain of 6.23% in that time.
Dominion Energy will be looking to display strength as it nears its next earnings release, which is expected to be May 5, 2023. On that day, Dominion Energy is projected to report earnings of $1.16 per share, which would represent a year-over-year decline of 1.69%. Our most recent consensus estimate is calling for quarterly revenue of $4.51 billion, up 5.4% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.93 per share and revenue of $17.31 billion. These totals would mark changes of -4.38% and +0.77%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Dominion Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.31% lower. Dominion Energy currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Dominion Energy has a Forward P/E ratio of 14.59 right now. Its industry sports an average Forward P/E of 17.58, so we one might conclude that Dominion Energy is trading at a discount comparatively.
Also, we should mention that D has a PEG ratio of 0.98. 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 industry currently had an average PEG ratio of 2.97 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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