With a market cap of around $47 billion, Dominion Energy, Inc. (D) is a leading energy company providing regulated electricity and natural gas services across the United States. It operates through key segments, including Dominion Energy Virginia, Dominion Energy South Carolina, and Contracted Energy, serving millions of customers with power generation, transmission, and distribution.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Dominion Energy fits this criterion perfectly. Dominion Energy also engages in non regulated energy operations, including renewable electricity generation and natural gas infrastructure. It manages a vast portfolio of assets, including electric and natural gas infrastructure, to support reliable energy delivery across 18 states.
Shares of the Richmond, Virginia-based company are trading 12.2% below its 52-week high of $61.97. The energy company has risen over 1% over the past three months, surpassing the broader Dow Jones Industrials Average’s ($DOWI) 5.9% decline over the same time frame.
In the longer term, D stock is up over 1% on a YTD basis, outperforming DOWI’s 2.8% decrease. Moreover, shares of Dominion Energy have rallied 15.9% over the past 52 weeks, compared to DOWI’s nearly 6% return over the same time frame.
To confirm its bullish trend, D has been trading above its 50-day and 200-day moving averages since last year despite recent fluctuations.
Despite reporting weaker-than-expected Q4 2024 revenue of $3.4 billion, Dominion Energy’s shares rose marginally on Feb. 12 due to a strong earnings beat, with adjusted EPS of $0.58. Investors were also encouraged by the company’s significant year-over-year earnings growth, as operating earnings nearly doubled and net income improved across key business segments. Additionally, Dominion’s positive 2025 earnings guidance, reaffirming 5% - 7% annual growth through 2029 and a $50 billion investment plan.
Lower interest expenses, improving financials, and increased demand from data centers further contributed to investor confidence, offsetting revenue concerns.
However, Dominion Energy has lagged behind its rival, American Electric Power Company, Inc. (AEP), which has recorded an 11.8% gain on a YTD basis and 23.7% return over the past 52 weeks.
Despite D’s outperformance relative to the Dow, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from the 18 analysts covering the stock, and as of writing, the stock is trading below the mean price target of $59.27.
