In the latest trading session, Dominion Energy (D) closed at $54.99, marking a +0.95% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.97%. Meanwhile, the Dow lost 1.69%, and the Nasdaq, a tech-heavy index, lost 2.7%.
Shares of the energy company witnessed a loss of 3.56% over the previous month, trailing the performance of the Utilities sector with its gain of 1.07% and the S&P 500's loss of 2.79%.
Investors will be eagerly watching for the performance of Dominion Energy in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.82, indicating a 49.09% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.92 billion, indicating a 7.84% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.39 per share and revenue of $15.93 billion. These totals would mark changes of +22.38% and +10.2%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Dominion Energy. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. Dominion Energy is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Dominion Energy is currently exchanging hands at a Forward P/E ratio of 16.09. For comparison, its industry has an average Forward P/E of 18.1, which means Dominion Energy is trading at a discount to the group.
We can also see that D currently has a PEG ratio of 1.18. 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. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.74 based on yesterday's closing prices.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Dominion Energy Inc. (D): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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