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

Zacks Equity Research

In the latest trading session, Dominion Energy (D) closed at $85.27, marking a +0.41% move from the previous day. This change outpaced the S&P 500's 0.33% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.67%.

Coming into today, shares of the energy company had gained 3.95% in the past month. In that same time, the Utilities sector gained 5.13%, while the S&P 500 gained 3.24%.

Investors will be hoping for strength from D as it approaches its next earnings release, which is expected to be February 11, 2020. The company is expected to report EPS of $1.16, up 30.34% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.88 billion, up 45.08% from the year-ago period.

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

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.32% lower. D is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note D's current valuation metrics, including its Forward P/E ratio of 19.54. For comparison, its industry has an average Forward P/E of 20.85, which means D is trading at a discount to the group.

It is also worth noting that D currently has a PEG ratio of 4.1. 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 4.11 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 38% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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