Dominion Energy (D) Gains But Lags Market: What You Should Know
In the latest trading session, Dominion Energy (D) closed at $66.92, marking a +1.38% move from the previous day. This move lagged the S&P 500's daily gain of 1.63%. At the same time, the Dow added 1.07%, and the tech-heavy Nasdaq gained 0.3%.
Prior to today's trading, shares of the energy company had lost 12.96% over the past month. This has lagged the Utilities sector's loss of 9.05% and the S&P 500's gain of 2.94% in that time.
Wall Street will be looking for positivity from Dominion Energy as it approaches its next earnings report date. This is expected to be November 4, 2022. In that report, analysts expect Dominion Energy to post earnings of $1.08 per share. This would mark a year-over-year decline of 2.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.91 billion, up 23.13% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.11 per share and revenue of $16.12 billion, which would represent changes of +6.48% and +15.45%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. Dominion Energy currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Dominion Energy is currently trading at a Forward P/E ratio of 16.07. This represents a discount compared to its industry's average Forward P/E of 16.25.
Investors should also note that D has a PEG ratio of 2.53 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. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.81 based on yesterday's closing prices.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 138, which puts it in the bottom 46% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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