Last Updated: 15 Sep 2024
Executive Summary
Dominion Energy Inc. (NYSE: D) is a leading American power and energy company with a market capitalization of $48.79 billion. The company provides electricity to parts of Virginia, North Carolina, and South Carolina, and natural gas to parts of Utah, West Virginia, Ohio, Pennsylvania, North Carolina, South Carolina, and Georgia. Dominion also has generation facilities in Indiana, Illinois, Connecticut, and Rhode Island.
The company's recent financial performance has been solid, with revenue growing 0.101% year-over-year to $14.46 billion in the latest quarter. Earnings per share (EPS) came in at $2.40, a slight decrease of 0.036% year-over-year. Dominion's strong fundamentals are reflected in its trailing price-to-earnings (PE) ratio of 24.23 and forward PE of 17.15.
Technically, Dominion's stock price is currently trading above its 50-day and 200-day moving averages, indicating a bullish trend. The stock's 52-week high is $58.18, while its 52-week low is $37.16.
Company Overview
Dominion Energy is a diversified energy company with a long history of providing reliable and affordable energy to its customers. The company's core businesses include electric generation, transmission, and distribution, as well as natural gas distribution and storage. Dominion also has a growing portfolio of renewable energy assets.
The company is headquartered in Richmond, Virginia, and serves a population of approximately 6 million people. Dominion's service territory includes some of the fastest-growing regions in the United States, such as the Greater Washington, D.C. area and the Research Triangle Park in North Carolina.
Fundamental Analysis
Dominion Energy's financial performance has been solid in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 3.5% over the past five years. EPS has grown at a CAGR of 4.2% over the same period.
The company's strong financial performance is driven by a number of factors, including:
A growing customer base in a favorable regulatory environment
A diverse portfolio of energy assets
A commitment to operational efficiency
Dominion Energy's balance sheet is also strong. The company has a low level of debt and a strong cash flow. This gives the company the financial flexibility to invest in new growth opportunities.
Technical Analysis
Dominion Energy's stock price has been in a bullish trend since the beginning of 2023. The stock price broke out of a resistance level at $52.00 in March and has been trending higher ever since. The stock price is currently trading above its 50-day and 200-day moving averages, which is a bullish sign.
The stock's relative strength index (RSI) is also in bullish territory, indicating that the stock is not overbought. The RSI is a momentum indicator that measures the magnitude of recent price changes. A reading above 70 indicates that the stock is overbought, while a reading below 30 indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for Dominion Energy is positive. The stock price is in a bullish trend and the company's fundamentals are strong. The stock price is currently trading at $58.16, which is close to its 52-week high. If the stock price can break out above its 52-week high, it could continue to trend higher in the short term.
Long Term Outlook
The long-term outlook for Dominion Energy is also positive. The company is well-positioned to benefit from the growing demand for energy in the United States. The company's diverse portfolio of energy assets and its commitment to operational efficiency give it a competitive advantage in the industry.
Analyst Recommendations
The majority of analysts who cover Dominion Energy have a positive outlook on the stock. The average analyst rating on the stock is "Buy." The average analyst target price on the stock is $56.59, which represents a potential upside of 3.5% from the current stock price.
