Dominion Energy’s Market Performance and Financial Outlook: Insights

With a market cap of around $47 billion, Dominion Energy, Inc. (D) stands out as a leading energy provider, supplying regulated electricity and natural gas services throughout the United States. The company operates through several key segments including Dominion Energy Virginia, Dominion Energy South Carolina, and Contracted Energy, reaching millions of customers with its power generation, transmission, and distribution services.

As a “large-cap” stock, defined by a valuation of $10 billion or more, Dominion Energy meets this classification effortlessly. The company also engages in unregulated energy operations, such as renewable electricity generation and natural gas infrastructure. With a substantial asset portfolio, Dominion Energy manages the reliable delivery of energy across 18 states.

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Shares of this Richmond, Virginia-based company are currently trading 12.2% below their 52-week high of $61.97. Over the past three months, the energy company’s value has increased by over 1%, outperforming the broader Dow Jones Industrials Average’s ($DOWI) decline of 5.9% during the same period.

In terms of year-to-date performance, D is up more than 1%, contrasting with DOWI’s decrease of 2.8%. Over the last 52 weeks, shares of Dominion Energy have increased by 15.9%, while DOWI has yielded nearly a 6% return.

Confirming its upward trajectory, D has been trading above both its 50-day and 200-day moving averages since last year, despite some recent fluctuations in the stock price.

Following the disclosure of its Q4 2024 revenue, which came in at $3.4 billion—below expectations—Dominion Energy’s shares marginally rose on February 12, driven by a strong earnings beat. The adjusted EPS stood at $0.58. Investors showed enthusiasm for the company’s significant year-over-year earnings growth, with operating earnings nearly doubling and net income improving across key segments. Moreover, Dominion has provided positive guidance for 2025, reaffirming an expected annual growth of 5% – 7% through 2029 and a planned $50 billion investment.

Lower interest expenses, improving financial metrics, and rising demand from data centers have further reassured investors, alleviating some concerns over revenue.

Nonetheless, Dominion Energy has not kept pace with American Electric Power Company, Inc. (AEP), which has achieved an 11.8% YTD gain and a 23.7% return over the past year.

Despite outperforming the Dow, analysts remain cautious regarding Dominion’s future. The stock holds a consensus rating of “Hold” from the 18 analysts monitoring it, and currently, it is trading below the average price target of $59.27.

On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information provided in this article is for informational purposes only. For further details, please view the Barchart Disclosure Policy
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.