DTE Energy Company (DTE), headquartered in Detroit, Michigan, develops and manages energy-related businesses and services. Valued at $25.6 billion by market cap, the company generates, purchases, transmits, distributes, and sells electric energy. DTE is also involved in gas pipelines and storage, unconventional gas exploration, development, and production.
Shares of this diversified energy company have underperformed the broader market considerably over the past year. DTE has gained 17.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27%. In 2024 alone, DTE’s stock rose 12.3%, compared to the SPX’s 18.1% rise on a YTD basis.
Narrowing the focus, DTE has also lagged behind the Vanguard Utilities Index Fund ETF Shares (VPU). The exchange-traded fund has gained about 18.9% over the past year. Moreover, the ETF’s 19.1% gains on a YTD basis outshine the stock’s returns over the same time frame.
On Jul. 25, DTE shares closed up marginally after reporting its Q2 earnings results. Its adjusted EPS of $1.43 topped Wall Street expectations of $1.20. DTE confirmed its 2024 adjusted EPS guidance and expects it to be between $6.54 and $6.83. Moreover, the company invested over $2 billion in the first half of 2024, on pace for a full-year investment of over $4 billion, to make its electric and natural gas infrastructure more resilient to extreme weather and to generate cleaner energy.
For the current fiscal year, ending in December, analysts expect DTE’s EPS to grow 16.9% to $6.70 on a diluted basis. The company’s earnings surprise history is mixed. It beat or matched the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 17 analysts covering DTE stock, the consensus is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” and six “Holds.”
This configuration is more bullish than a month ago, with nine analysts suggesting a “Strong Buy.”
On Aug. 23, Morgan Stanley (MS) analyst David Arcaro maintained a “Buy” rating on DTE with a price target of $121.
The mean price target of $125.36 represents a 1.2% premium to DTE’s current price levels. The Street-high price target of $137 suggests an upside potential of 10.6%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
