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Headquartered in Richmond, Virginia, Dominion Energy Inc. (D) produces and distributes energy in the U.S. Valued at $44.22 billion by market cap, it is a major energy company engaged in regulated and non-regulated electricity distribution, generation, and transmission businesses. The company also sells wholesale electricity to rural electric cooperatives and municipalities and through wholesale markets. It operates the nation's largest underground natural gas storage system, with a capacity of approximately 1 trillion cubic feet (Tcf).
Dominion Energy has underperformed the broader market over the last year. The stock has gained 2.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.9%. But in 2024, D stock is up 12.3%, marginally surpassing SPX’s 11.2% rise on a YTD basis.
Narrowing the focus, D’s gains over the past 52 weeks are easily overshadowed by the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained about 9.2% over this period. Moreover, the ETF’s 12.9% gains on a YTD basis marginally outweigh the stock’s returns over the same time frame.
On May 2, Dominion Energy reported Q1 results, beating Wall Street's EPS estimates. Management expects full-year earnings in the range of $2.62 to $2.87 per share. The stock gained marginally on the day it released earnings and has been in an uptrend since then.
For the current fiscal year, ending in December, analysts expect D’s EPS to grow 38.2% to $2.75 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing on two other occasions.
Among the 14 analysts covering D stock, the consensus rating is a “Moderate Buy.” That’s based on three “Strong Buy” ratings and 11 “Holds.”
This configuration is slightly less bullish than three months ago, with 4 suggesting a “Strong Buy.”
On May 13, Bank of America upgraded Dominion Energy to “Neutral” from “Underperform” with a price target of $54, which indicates a 2.3% upside from the current levels.
While D is currently trading at a premium to the mean price target of $51.75, the Street-high price target of $55 suggests an upside potential of 4.2%.
On the date of publication, Rashmi Kumari 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.
