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Dominion Energy (D) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Dominion Energy (D) closed the most recent trading day at $81.45, moving -0.13% from the previous trading session. This change lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.05%.

Heading into today, shares of the energy company had lost 1.04% over the past month, lagging the Utilities sector's gain of 2.6% and the S&P 500's gain of 2.48% in that time.

Wall Street will be looking for positivity from D as it approaches its next earnings report date. On that day, D is projected to report earnings of $1.16 per share, which would represent year-over-year growth of 30.34%. Our most recent consensus estimate is calling for quarterly revenue of $4.53 billion, up 34.87% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.21 per share and revenue of $17.23 billion. These totals would mark changes of +3.95% and +28.94%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.78% higher. D is currently a Zacks Rank #3 (Hold).

Investors should also note D's current valuation metrics, including its Forward P/E ratio of 19.37. For comparison, its industry has an average Forward P/E of 20.51, which means D is trading at a discount to the group.

It is also worth noting that D currently has a PEG ratio of 4.05. 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 3.88 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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