Analysts expect a 2% rise in Dominion Resources (D) stock over the next year. According to analysts’ estimates, it has a mean estimated price of $76.94 compared to its current market price of $75.35.
Of the 22 analysts tracking Dominion Resources on February 23, 2017, four recommended it as a “strong buy,” while four recommended it as a “buy.” The other 14 analysts recommended Dominion as a “hold.” No analysts offered “sell” recommendations on the stock.
The consensus Wall Street analyst price target for Southern Company (SO) is $50.61. Its current market price is $48.99, implying a rise of 3.3% over the next year.
NextEra Energy (NEE) has a mean target price of $136.67 compared to its current market price of $128.44, implying a rise of 6.0% in the next year.
Dominion Resources: Outlook
The poor outlook for 2017 may not be that negative for Dominion Resources and its investors, as the company noted that its 2018 expected earnings are projected to have “at least” 10% growth year-over-year. From 2018–2020, Dominion Resources’s earnings are expected to increase 6%–8% compounded annually, which is higher than the industry average.
Dominion Resources’s management is targeting an annual dividend increase that exceeds 8% from 2018–2020, which is also well above the industry average (XLU) of ~4%.
To learn more about how utilities may be positioned in 2017, please read Hawkish Fed or Helpful Weather: What Will Drive Utilities in 2017?