Dominion Energy (D) closed at $61.46 in the latest trading session, marking a -0.52% move from the prior day. This move was narrower than the S&P 500’s daily loss of 1.2%. Meanwhile, the Dow lost 1.1%, and the Nasdaq, a tech-heavy index, lost 2.86%.
Coming into today, shares of the energy company had gained 3.36% in the past month. In that same time, the Utilities sector gained 0.16%, while the S&P 500 lost 4.77%.
Investors will be hoping for strength from Dominion Energy as it approaches its next earnings release. The company is expected to report EPS of $1.06, up 17.78% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.18 billion, up 7.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.12 per share and revenue of $16.3 billion, which would represent changes of +6.74% and +16.72%, 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 a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. 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 15.01. Its industry sports an average Forward P/E of 18.62, so we one might conclude that Dominion Energy is trading at a discount comparatively.
Also, we should mention that D has a PEG ratio of 2.59. 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. The Utility – Electric Power was holding an average PEG ratio of 3.25 at yesterday’s closing price.
The Utility – Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 135, putting it in the bottom 47% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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