Is Dominion Energy Stock Underperforming the Nasdaq?

Richmond, Virginia-based Dominion Energy, Inc. (D) is a producer and distributer of energy in the U.S. With a market cap of $45.1 billion, Dominion Energy operates through Dominion Energy Virginia, Dominion Energy South Carolina, and Contracted Energy segments.

Companies worth $10 billion or more are generally described as “large-cap stocks,” Dominion Energy fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the regulated electric utilities industry.

Its diverse portfolio of regulated and renewable energy assets provides stable revenue streams and growth potential. Its focus on clean energy transition, including investments in offshore wind and solar projects, aligns with increasing regulatory and consumer demand for sustainability. The company benefits from a strong presence in key service areas with favorable demographic and economic trends, enhancing its customer base and utility operations. 

Dominion Energy is down 13.4% from its 52-week high of $61.97, achieved on Nov. 1. D has dropped 7.4% over the past three months, underperforming the broader Nasdaq Composite ($NASX), which has surged 9.1% over the same time frame.

Over the longer term, Dominion Energy gained 13.7% over the past 52 weeks, lagging behind NASX’s 32.4% gains over the same time frame. Moreover, in 2024, D gained 14.2%, trailing NASX’s 30.4% returns on a YTD basis.

D has remained below its 50-day moving average since early December, but it has recently climbed above its 200-day moving average.

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. 

Rival CenterPoint Energy, Inc. (CNP) has slightly outperformed Dominion Energy. CNP stock has surged 15% over the past 52 weeks and 13.9% in 2024.

Among the 18 analysts covering the Dominion Energy stock, the consensus rating is a “Hold.” Its mean target price of $60.36 represents a potential upside of 12.5% from current price levels.

On the date of publication,

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.