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

Zacks Equity Research
·3 min read

Dominion Energy (D) closed at $81.14 in the latest trading session, marking a -0.05% move from the prior day. This move lagged the S&P 500's daily gain of 0.35%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.37%.

Prior to today's trading, shares of the energy company had gained 6.38% over the past month. This has lagged the Utilities sector's gain of 8.9% and outpaced the S&P 500's gain of 4.32% 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 5, 2020. In that report, analysts expect D to post earnings of $1 per share. This would mark a year-over-year decline of 15.25%. Meanwhile, our latest consensus estimate is calling for revenue of $3.64 billion, down 14.69% from the prior-year quarter.

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.

Any recent changes to analyst estimates for D should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.62% higher. D is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, D is currently trading at a Forward P/E ratio of 22.32. Its industry sports an average Forward P/E of 18.42, so we one might conclude that D is trading at a premium comparatively.

Investors should also note that D has a PEG ratio of 6.24 right now. 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. D's industry had an average PEG ratio of 3.86 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 196, putting it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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