Dominion Energy’s Stock Struggles to Keep Up with Market Trends
Company Overview and Market Performance
Dominion Energy, Inc. (D), based in Richmond, Virginia, is valued at a market cap of $47.2 billion and focuses on producing and distributing natural gas and electricity. The company serves 7.50 million customers across 18 states, providing energy transmission, gathering, and storage services.
Recent Stock Performance Comparison
Over the past year, shares of Dominion Energy have significantly underperformed against the broader market. While the stock price has gained 22%, the S&P 500 Index ($SPX) has surged nearly 30.4%. This year’s performance shows a similar trend, with D up 22.6% and the SPX rising by 23.1% year-to-date.
Utilities Sector Context
Looking specifically at the Utilities Select Sector SPDR Fund (XLU), D’s challenges are evident. The ETF has increased about 28.3% over the last year and reported a 25.1% gain in 2024.
Stock Movements During Market Shifts
On November 15, amidst a market downturn, Dominion Energy’s stock rose over 2%, highlighting its reputation as a defensive utility stock as investors sought stability.
Earnings Report Insights
After posting its Q3 earnings on November 1, Dominion’s shares fell by 2.3% in the next trading session. Although D exceeded earnings per share (EPS) expectations, its revenue fell short, resulting in the stock’s decline.
Future Earnings Projections
For the fiscal year ending in December, analysts predict a 38.7% increase in D’s EPS to $2.76 on a diluted basis. Historically, the company’s earnings surprise record has been mixed, with two misses and two beats in the last four quarters.
Analyst Ratings Overview
Among the 17 analysts covering D, the consensus rating is a “Hold,” comprising three “Strong Buy” ratings and 14 “Holds.”
Goldman Sachs’ Market Perspective
On November 8, The Goldman Sachs Group, Inc. (GS) reinstated coverage of Dominion Energy with a “Neutral” rating and set a price target of $61. This adjustment follows significant events, including the sale of Dominion’s gas Local Distribution Company (LDC) business and a 50% stake in the Coastal Virginia Offshore Wind (CVOW) project, as well as reviews of its Q3 earnings results.
Price Target Outlook
The mean price target of $60 indicates a potential 4.1% increase from D’s current levels. On the higher end, the Street-high target of $65 suggests a possible upside of 12.8%.
On the date of publication, Kritika Sarmah 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.