Dominion Energy looks strong
On October 3, Dominion Energy’s (D) 50-day moving average was 0.9% higher than its 200-day moving average. On September 20, the company’s 50-day moving average rose above its 200-day moving average.
A stock’s short-term moving average crossing above its long-term moving average is called a “golden cross,” and it indicates bullishness.
Dominion’s management’s guidance for its third-quarter operating EPS is $1.15, just $0.01 higher than analysts’ consensus estimate. If Dominion’s actual operating EPS fall in line with this guidance, the company will have recorded rises of 33.7% and 10.6% sequentially and year-over-year, respectively.
Until now, Dominion hasn’t announced the date of its third-quarter earnings results. Usually, the company reports its third-quarter results near the end of October.
Dominion Energy underperformed utilities
As of October 3, Dominion Energy has fallen 13.3% YTD (year-to-date). In comparison, the Utilities Select Sector SPDR ETF (XLU) has fallen just 0.3% YTD. The S&P 500 Index (SPY) and the S&P Mid-Cap 400 Index (IVOO), the broader market indexes, have risen 9.4% and 5.4% YTD, respectively. Utility stocks make up 2.8% and 4.5% of these equity indexes, respectively.
Stock fell despite better earnings than analysts’ estimates
In the first and second quarters, Dominion’s reported operating EPS were 9.6% and 8.9% higher than analysts’ consensus estimates, respectively. However, in the first quarter, Dominion’s operating EPS came in just $0.01 below its guidance. In the second quarter, the company managed to report operating EPS of $0.86 compared to its guidance of $0.80.
On August 1, Dominion Energy reported its second-quarter earnings results. From then until September 24, the stock managed to close above the psychologically important level of $70 in almost all instances.
Dominion, along with the utility sector, witnessed a mild correction following the Fed’s decision to increase the interest rate on September 26. On September 28, the stock bounced back above the $70 level.