Detroit-based DTE Energy Company (DTE) is a leading energy provider specializing in utility operations and non-utility energy businesses. With a market cap of $25.8 billion, DTE delivers reliable electric and natural gas services to millions of customers. Renowned for its focus on sustainability and community development, the company supports economic growth while addressing the evolving energy needs of businesses and households across its service areas.
Shares of DTE Energy have gained 19.1% over the past 52 weeks, underperforming the broader S&P 500 Index ($SPX), which rallied nearly 32.1%. In 2024, DTE shares are up 13.8% on a YTD basis, lagging behind the SPX's 26.2% gain.
Narrowing the focus, DTE is underperforming the Utilities Select Sector SPDR Fund (XLU) 32.2% gains over the past 52 weeks and the exchange traded fund’s 30.9% returns on a YTD basis.
DTE Energy has underperformed relative to the market and its peers, driven by concerns over its reliance on fossil fuels and potential regulatory challenges. To address these issues, the company has been investing in renewable energy and diversifying its portfolio.
Following its Q3 earnings release on Oct. 24, DTE Energy's shares declined marginally despite reporting adjusted EPS of $2.22, a 54.2% increase year-over-year and above the consensus estimate of $1.87. The company confirmed its 2024 operating EPS guidance range of $6.54 to $6.83, signaling confidence in its forward outlook.
For the current fiscal year, ending in December, analysts expect DTE’s EPS to grow 17.6% to $6.74 on a diluted basis. The company’s earnings surprise history is mixed. It beat or matched the consensus estimate in three of the last four quarters while missing the forecast on one other occasion.
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 has been consistent over the past three months.
On Nov. 22, Morgan Stanley (MS) lowered DTE's price target to $128 from $131 while maintaining an “Overweight” rating, citing October's utility sector underperformance and broader concerns about regulatory risks in California.
The mean price target of $138.18 represents a 10.1% premium to DTE’s current price levels. The Street-high price target of $145 suggests an upside potential of 15.6%.
