Dominion Energy (D) Outpaces Stock Market Gains: What You Should Know
Dominion Energy (D) closed at $81.41 in the latest trading session, marking a +0.74% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.01%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Heading into today, shares of the energy company had gained 1.24% over the past month, lagging the Utilities sector's gain of 4.54% and the S&P 500's gain of 2.55% in that time.
D will be looking to display strength as it nears its next earnings release, which is expected to be November 5, 2020. On that day, D is projected to report earnings of $1.06 per share, which would represent a year-over-year decline of 10.17%. Meanwhile, our latest consensus estimate is calling for revenue of $3.62 billion, down 15.19% from the prior-year quarter.
D's full-year Zacks Consensus Estimates are calling for earnings of $3.63 per share and revenue of $16.48 billion. These results would represent year-over-year changes of -14.39% and -0.56%, respectively.
Investors might also notice recent changes to analyst estimates for D. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. The Zacks Consensus EPS estimate has moved 1.89% lower within the past month. D is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, D is holding a Forward P/E ratio of 22.26. For comparison, its industry has an average Forward P/E of 18.17, which means D is trading at a premium to the group.
Meanwhile, D's PEG ratio is currently 6.31. 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. D's industry had an average PEG ratio of 3.82 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow D in the coming trading sessions, be sure to utilize Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.