Dominion Energy, Inc. (D), headquartered in Richmond, Virginia, and valued at a market cap of $47.2 billion, is an energy company specializing in the production and distribution of natural gas and electricity. Serving 7.50 million customers across 18 states, Dominion delivers energy transmission, gathering, and storage solutions.
Shares of this leading energy company have underperformed the broader market considerably over the past year. D has gained 22% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 30.4%. In 2024, D’s stock is up 22.6%, lagging the SPX’s 23.1% rise on a YTD basis.
Narrowing the focus, D’s underperformance is also apparent when compared to the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained about 28.3% over the past year and returned 25.1% in 2024.
Amid the market downturn on Nov. 15, Dominion Energy stock rose over 2%, emerging as a standout performer as investors turned to defensive utility stocks for stability.
On Nov. 1, Dominion Energy posted its Q3 earnings, and its share dipped by 2.3% in the following trading session. While it surpassed its EPS expectations, its revenue did not meet Street forecasts, leading to the stock's decline.
For the current fiscal year, ending in December, analysts expect D’s EPS to grow 38.7% to $2.76 on a diluted basis. The company’s earnings surprise history is mixed. It missed the consensus estimate in two of the last four quarters while beating the forecast on two other occasions.
Among the 17 analysts covering D stock, the consensus rating is a Hold.” That’s based on three “Strong Buy” ratings and 14 “Holds.”
This configuration has been stable over the past months.
On November 8, The Goldman Sachs Group, Inc. (GS) reinstated coverage of Dominion Energy with a “Neutral” rating and a price target of $61. The update follows key developments, 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 the review of its Q3 earnings results.
The mean price target of $60 represents a 4.1% upswing to D’s current price levels. However, the Street-high price target of $65 suggests an upside potential of 12.8%.
