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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.