Valued at a market cap of $41.2 billion, Richmond, Virginia-based Dominion Energy, Inc. (D) is a leading energy company specializing in regulated and non-regulated electricity distribution, generation, and transmission. The company operates nationwide, serving millions of customers and managing extensive energy infrastructure across multiple states.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Dominion Energy fits this criterion perfectly, exceeding the mark. Dominion Energy stands out in the market for its vast energy portfolio, encompassing 27,000 megawatts of power generation, 54,000 miles of distribution lines, and the nation's largest natural gas storage facility with over 975 billion cubic feet of capacity, alongside substantial investments in renewable energy.
Despite a 10.1% dip from its 52-week high of $54.74 achieved in July last year, the energy company has rebounded with a 5.4% increase in its share price over the past three months. However, it has underperformed the broader S&P 500 Utilities Sector SPDR (XLU), which gained 8.5% during the same period.
Longer term, Dominion Energy’s shares have soared 4.7% on a YTD basis, lagging behind XLU's 8.7% gain. Furthermore, D's shares have declined 6.8% over the past 52 weeks, compared to XLU's 4.8% gains over the same time frame.
However, D has been trading above its 200-day moving average since March and also remained above its 50-day moving average during this period despite some fluctuations recently, indicating a bullish price trend.
Dominion Energy has struggled due to ongoing challenges, including strategic transformations, regulatory uncertainties, and investor confidence issues stemming from its financial restructuring efforts. Nevertheless, the stock rose marginally on May 2 following its Q1 earnings release, as the company reaffirmed its fiscal 2024 operating earnings per share forecast and reported operating earnings in line with analysts' expectations, despite a decline in net income attributed to unfavorable weather and higher interest charges.
Highlighting the stock's underperformance, its rival, The Southern Company (SO), has outperformed D, with shares of SO surging 8.7% over the past 52 weeks and 11.2% on a YTD basis.
Despite D’s underwhelming price action, analysts are cautiously optimistic, with a consensus rating of "Moderate Buy" from 14 analysts. It is currently trading slightly below the mean price target of $51.75.
On the date of publication, Sohini Mondal 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.
