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

Zacks Equity Research

Dominion Energy (D) closed at $81.90 in the latest trading session, marking a +0.15% move from the prior day. The stock lagged the S&P 500's daily gain of 1.09%. Meanwhile, the Dow gained 1.21%, and the Nasdaq, a tech-heavy index, added 1.34%.

Heading into today, shares of the energy company had gained 4.13% over the past month, outpacing the Utilities sector's gain of 1.79% and the S&P 500's loss of 1.17% in that time.

Wall Street will be looking for positivity from D as it approaches its next earnings report date. This is expected to be November 1, 2019. In that report, analysts expect D to post earnings of $1.15 per share. This would mark no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.40 billion, up 27.53% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.14 per share and revenue of $17.42 billion, which would represent changes of +2.22% and +30.3%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for D. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. D currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that D has a Forward P/E ratio of 19.74 right now. For comparison, its industry has an average Forward P/E of 21.43, which means D is trading at a discount to the group.

Also, we should mention that D has a PEG ratio of 4.08. 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 3.94 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 64, which puts it in the top 26% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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