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Dominion Energy Hits 52-Week High: What's Driving the Stock?
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Dominion Energy (D - Free Report) touched a new 52-week high of $58.13 on Sept. 5. It closed the trading session at $57.34, up 3.4% from that recorded on Aug. 28. This increase was fueled by the approval of Dominion Energy Virginia's application to extend North Anna Power Station's operating licenses for an additional 20 years.
D stock has gained 21.7% in the past six months, outperforming the Zacks Utility- Electric Power industry’s growth of 20.4%, the Zacks Utilities sector rally of 16.8% and the Zacks S&P 500 composite’s return of 8.6%.
Image Source: Zacks Investment Research
Dominion Energy currently carries a Zacks Rank #3 (Hold). It has been benefiting from strategic investments to expand its existing electric and natural gas infrastructure and its focus on renewable energy.
What's Driving D Stock’s Performance?
Approval to Extend North Anna Power Station Operations: Recently, the company received approval from The Nuclear Regulatory Commission (“NRC”) to extend its North Anna power station's operating licenses for an additional 20 years. In Louisa County, VA, the power plant runs two nuclear reactors and produces enough carbon-free electricity to power 500,000 households.
The NRC had previously approved Dominion Energy's Surry Power Station's request to extend its operational license to 2053. When combined, Surry and North Anna provide 40% of Virginia's electricity and around 90% of the state's carbon-free power.
Dominion Energy is updating reactor coolant pumps, rebuilding the main generators and condensers, and switching from analog to digital instrument and control systems at North Anna in order to prolong the station's lifespan. The thorough federal review process ensures that the facilities continue to operate in a safe and reliable manner. D plans to seek recovery of the costs associated with the license extension from the Virginia State Corporation Commission later this year.
Rising Demand From Data Centers: Dominion Energy is experiencing commercial load growth driven by data centers demand. The company connected nine new data centers year to date and expects to connect another 15 in 2024. Strong load growth is expected to boost the company’s earnings. D projects an operating earnings annual growth rate of 5-7% through 2029. In the second quarter of 2024, Dominion Energy delivered operating earnings of 55 cents per share, up 3.8% from 53 cents in the year-ago quarter.
Attractive customer growth across its Virginia and South Carolina service areas is also boosting demand for its services. In the second quarter, Dominion Energy Virginia recorded net income of $485 million, up 23.1% year over year. South Carolina recorded net income of $69 million, up 1.5% on a year-over-year basis.
Strategic Investments: The company plans to invest $9.8 billion in 2024 and $43 billion in the 2025-2029 period to further expand its existing electric and natural gas infrastructure. This should help it to improve its service reliability.
Focus on Renewable Energy: D aims to cut emissions by 70-80% within 2035 from the 2005 level. By 2035, the company also intends to make zero- and low-emitting resources accountable for 99% of its electric generation.
Dominion Energy’s long-term objective is to add 24 gigawatt of battery storage, solar, hydro and wind (offshore as well as onshore) projects by 2036 and increase the renewable energy capacity by more than 15% per year, on average, over the next 15 years.
Other Utility Stocks Trading at 52-Week High
Some other companies from the same industry like Ameren Corp. (AEE - Free Report) , Duke Energy (DUK - Free Report) and Eversource Energy (ES - Free Report) are also currently trading at 52-week high.
AEE’s shares have risen 17.9% in the past three months compared with industry’s 8% growth. It touched a new 52-week high of $84.6 on Sept. 5. The stock closed the trading session at $83.74.
DUK’s shares have risen 13.9% in the past three months. It touched a new 52-week high of $118.11 on Sept. 5. The stock closed the trading session at $116.85.
The Zacks Consensus Estimate for DUK’s 2024 EPS indicates a year-over-year increase of 7.4%. The company currently carries a Zacks Rank #4 (Sell).
ES’ shares have risen 16.2% in the past three months. It touched a new 52-week high of $69.01 on Sept. 5. The stock closed the trading session at $68.05.
The Zacks Consensus Estimate for ES’ 2024 EPS indicates a year-over-year increase of 5.1%. The company currently carries a Zacks Rank #3.
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Dominion Energy Hits 52-Week High: What's Driving the Stock?
Dominion Energy (D - Free Report) touched a new 52-week high of $58.13 on Sept. 5. It closed the trading session at $57.34, up 3.4% from that recorded on Aug. 28. This increase was fueled by the approval of Dominion Energy Virginia's application to extend North Anna Power Station's operating licenses for an additional 20 years.
D stock has gained 21.7% in the past six months, outperforming the Zacks Utility- Electric Power industry’s growth of 20.4%, the Zacks Utilities sector rally of 16.8% and the Zacks S&P 500 composite’s return of 8.6%.
Image Source: Zacks Investment Research
Dominion Energy currently carries a Zacks Rank #3 (Hold). It has been benefiting from strategic investments to expand its existing electric and natural gas infrastructure and its focus on renewable energy.
What's Driving D Stock’s Performance?
Approval to Extend North Anna Power Station Operations: Recently, the company received approval from The Nuclear Regulatory Commission (“NRC”) to extend its North Anna power station's operating licenses for an additional 20 years. In Louisa County, VA, the power plant runs two nuclear reactors and produces enough carbon-free electricity to power 500,000 households.
The NRC had previously approved Dominion Energy's Surry Power Station's request to extend its operational license to 2053. When combined, Surry and North Anna provide 40% of Virginia's electricity and around 90% of the state's carbon-free power.
Dominion Energy is updating reactor coolant pumps, rebuilding the main generators and condensers, and switching from analog to digital instrument and control systems at North Anna in order to prolong the station's lifespan. The thorough federal review process ensures that the facilities continue to operate in a safe and reliable manner. D plans to seek recovery of the costs associated with the license extension from the Virginia State Corporation Commission later this year.
Rising Demand From Data Centers: Dominion Energy is experiencing commercial load growth driven by data centers demand. The company connected nine new data centers year to date and expects to connect another 15 in 2024. Strong load growth is expected to boost the company’s earnings. D projects an operating earnings annual growth rate of 5-7% through 2029. In the second quarter of 2024, Dominion Energy delivered operating earnings of 55 cents per share, up 3.8% from 53 cents in the year-ago quarter.
Attractive customer growth across its Virginia and South Carolina service areas is also boosting demand for its services. In the second quarter, Dominion Energy Virginia recorded net income of $485 million, up 23.1% year over year. South Carolina recorded net income of $69 million, up 1.5% on a year-over-year basis.
Strategic Investments: The company plans to invest $9.8 billion in 2024 and $43 billion in the 2025-2029 period to further expand its existing electric and natural gas infrastructure. This should help it to improve its service reliability.
Focus on Renewable Energy: D aims to cut emissions by 70-80% within 2035 from the 2005 level. By 2035, the company also intends to make zero- and low-emitting resources accountable for 99% of its electric generation.
Dominion Energy’s long-term objective is to add 24 gigawatt of battery storage, solar, hydro and wind (offshore as well as onshore) projects by 2036 and increase the renewable energy capacity by more than 15% per year, on average, over the next 15 years.
Other Utility Stocks Trading at 52-Week High
Some other companies from the same industry like Ameren Corp. (AEE - Free Report) , Duke Energy (DUK - Free Report) and Eversource Energy (ES - Free Report) are also currently trading at 52-week high.
AEE’s shares have risen 17.9% in the past three months compared with industry’s 8% growth. It touched a new 52-week high of $84.6 on Sept. 5. The stock closed the trading session at $83.74.
The Zacks Consensus Estimate for AEE’s 2024 EPS indicates year-over-year growth of 5.3%. AEE currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DUK’s shares have risen 13.9% in the past three months. It touched a new 52-week high of $118.11 on Sept. 5. The stock closed the trading session at $116.85.
The Zacks Consensus Estimate for DUK’s 2024 EPS indicates a year-over-year increase of 7.4%. The company currently carries a Zacks Rank #4 (Sell).
ES’ shares have risen 16.2% in the past three months. It touched a new 52-week high of $69.01 on Sept. 5. The stock closed the trading session at $68.05.
The Zacks Consensus Estimate for ES’ 2024 EPS indicates a year-over-year increase of 5.1%. The company currently carries a Zacks Rank #3.