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Dominion Energy (D) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·3 min read

In the latest trading session, Dominion Energy (D) closed at $80.95, marking a +1.44% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.2%. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 1.64%.

Coming into today, shares of the energy company had gained 1.1% in the past month. In that same time, the Utilities sector lost 3.95%, while the S&P 500 lost 2.23%.

Wall Street will be looking for positivity from D as it approaches its next earnings report date. This is expected to be November 5, 2020. The company is expected to report EPS of $1, down 15.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.64 billion, down 14.69% from the year-ago period.

D's full-year Zacks Consensus Estimates are calling for earnings of $3.64 per share and revenue of $16.49 billion. These results would represent year-over-year changes of -14.15% and -0.48%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.62% higher. D is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, D currently has a Forward P/E ratio of 21.94. This represents a premium compared to its industry's average Forward P/E of 17.47.

Also, we should mention that D has a PEG ratio of 6.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. D's industry had an average PEG ratio of 3.7 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 175, which puts it in the bottom 31% 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.

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


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