Dominion Energy (D) Stock Sinks As Market Gains: Here’s Why
Dominion Energy (D) stock fell slightly by 0.16%, underperforming the broader market gains, which saw the S&P 500 rise by 0.4%. Despite recent positive trends, Dominion’s stock struggles amid challenges in the utilities sector and uncertainties surrounding its upcoming earnings report. Analysts predict a solid earnings growth of 22% for the next quarter, but recent lower revenue projections have caused investor concern. The stock’s valuation, higher than industry averages, may also be contributing to investor hesitation
Dominion Energy (D) ended the recent trading session at $57.13, demonstrating a -0.16% swing from the preceding day’s closing price. This move lagged the S&P 500’s daily gain of 0.4%. On the other hand, the Dow registered a gain of 0.62%, and the technology-centric Nasdaq increased by 0.6%.
Heading into today, shares of the energy company had gained 1.91% over the past month, lagging the Utilities sector’s gain of 4.34% and outpacing the S&P 500’s gain of 1.71% in that time.
Investors will be eagerly watching for the performance of Dominion Energy in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.94, indicating a 22.08% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $4.12 billion, up 8.23% from the year-ago period.
D’s full-year Zacks Consensus Estimates are calling for earnings of $2.75 per share and revenue of $15.73 billion. These results would represent year-over-year changes of +38.19% and -4.05%, respectively.
Any recent changes to analyst estimates for Dominion Energy should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. At present, Dominion Energy boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Dominion Energy is presently trading at a Forward P/E ratio of 20.8. This valuation marks a premium compared to its industry’s average Forward P/E of 17.67.
Investors should also note that D has a PEG ratio of 1.53 right now. 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 industry currently had an average PEG ratio of 2.81 as of yesterday’s close.
