Investors are always looking for stocks that are poised to beat at earnings season and
Dominion Energy, Inc.
D
may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Dominion Energy is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for D in this report.
In fact, the Most Accurate Estimate for the current quarter is currently higher than the broader Zacks Consensus Estimate of 90 cents per share. This suggests that analysts have very recently bumped up their estimates for D, giving the stock a Zacks Earnings ESP of +0.09% heading into earnings season.
Dominion Energy Inc. Price and EPS Surprise
Dominion Energy Inc. price-eps-surprise
|
Dominion Energy Inc. Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more
Top Earnings ESP stocks here
).
Given that D has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Dominion Energy, and that a beat might be in the cards for the upcoming report.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report