Detroit, Michigan-based DTE Energy Company (DTE) engages in regulated and unregulated energy businesses. With a market cap of $25.1 billion, DTE Energy generates electricity through coal-fired plants, hydroelectric pumped storage, nuclear plants, and wind & solar assets.
Companies worth $10 billion or more are generally described as "large-cap stocks," DTE Energy fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the regulated electric industry. It sells electricity to customers in 13 counties in the United States including Ohio, Michigan, and Kentucky.
Despite its notable strengths, DTE has slipped 7.8% from its 52-week high of $131.66 touched on Oct. 24. Furthermore, DTE stock prices have declined nearly 4% over the past three months, underperforming the S&P 500 Index’s ($SPX) 7.8% surge during the same time frame.
The stock has underperformed over the longer term as well, DTE gained 10.1% on a YTD basis and 10.4% over the past 52 weeks, compared to SPX’s 27.3% gains in 2024 and 28.7% returns over the past year.
To confirm the overall bullish trend and recent downturn, DTE has consistently traded above its 200-day moving average since mid-April and below its 50-day moving average since late October with minor fluctuations.
DTE Energy’s stock observed a marginal dip after the release of its mixed Q3 results on Oct. 24. The company’s revenues grew by a modest 62 basis points year-over-year to $2.9 billion and due to an increase in operating expenses its operating margin contracted by 84 basis points compared to the year-ago quarter to 17.8%. This resulted in a 3.9% year-over-year decline in operating profits to $517 million. However, its adjusted EPS surged by a staggering 54.2% year-over-year to $2.22, which surpassed analysts' estimates by a notable 18.7%.
Meanwhile, the company has continued to invest in building electric grids, transforming its power generation to deliver cleaner sources of energy, and upgrading and expanding its natural gas infrastructure to be safer and more reliable. DTE is on track to invest over $4 billion in 2024 in these infrastructures, demonstrating its aggressive approach towards expansion.
While DTE has lagged behind its peer Dominion Energy, Inc.’s (D) 13.9% gains on a YTD basis, it has matched Dominion’s 10.4% surge over the past 52 weeks.
Among the 18 analysts covering the DTE stock, the consensus rating is a “Moderate Buy.” The mean price target of $139.03 represents a 14.6% premium to current price levels.
