Artificial intelligence is energy-intensive. That’s a boon for energy companies like Dominion Energy (D). Last quarter Dominion reported an 86% leap in earnings on a 10% rise in revenue. Analysts polled by FactSet expect EPS gains of 21% and then 129% the next two quarters, accompanied by accelerating revenue growth.
When considering what names to put on your watchlist, stocks with an 80 or higher Relative Strength Rating are a good hunting ground. Market research shows that the market’s biggest winners often have an RS Rating north of 80 as they launch their biggest price moves.
On Wednesday, Dominion Energy met and exceeded that criteria with an upgraded RS Rating of 84. The 84 RS Rating means that Dominion stock beat 84% of all stocks in IBD’s database for price performance this past year.
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Dominion Stock On Big Funds’ Buy Lists
Dominion has a 71 EPS Rating and a 76 Composite Rating. Its C+ Accumulation/Distribution Rating shows that big funds are buying more of its shares than selling.
Dominion owns and operates a variety of systems In the Northeast and mid-Atlantic regions. Its operations span the energy spectrum including nuclear, wind, solar, hydroelectric, biomass and traditional natural gas, coal and oil.
Regarding top and bottom line numbers, Dominion Energy has posted rising EPS growth over the last two quarters. Sales gains have also moved higher over the same time frame. The company is expected to release its next quarterly numbers on or around Nov. 1.
Although its results last quarter were outstanding, it struggled last year and earlier this year. The last four quarters it reported an EPS gain of 245%, then declines of 65% and 7%, before reversing to the 86% rise last quarter. Analysts expect earnings and revenue growth will be stronger in coming quarters.
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Looking For Fresh Pattern After Big Gains
Richmond, Va.-based Dominion Energy’s stock has risen more than 50% in the past year. It’s now considered extended and out of buy range after clearing a 52.56 buy point in a first-stage cup with handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Dominion Energy holds the No. 11 rank among its peers in the 29-stock Utility-Diversified industry group. NRG Energy (NRG), NiSource (NI) and PG&E (PCG) are among the top 5 highly rated stocks in the group.
The exclusive Relative Strength Rating from Investor’s Business Daily tracks market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock’s price performance over the trailing 52 weeks compares to all the other stocks in our database.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
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