D - Dominion Energy Is A Hold Until The Restructuring Dust Settles

2024-02-02 16:08:31 ET

Summary

• Dominion Energy is undergoing a strategic restructuring, focusing on its regulated electricity business and divesting its natural gas assets.
• Sales growth is expected to be steady at around 2% annually, while EPS is projected to rebound with a robust annual growth rate of about 15%.
• Dominion Energy has opportunities for growth in the regulated electricity sector, renewable energy investments, and grid modernization, but faces risks from regulatory changes and execution challenges.

Introduction

With its slow evolution, the utility sector presents an interesting investment area for more conservative investors. We see a shift in the segment as the world pivots towards sustainable energy. Utility companies face the dual challenge of meeting growing energy demands while transitioning to greener sources. This period of transformation and uncertainty in the energy market opens up intriguing opportunities for certain companies while staying a regulated monopoly . Dominion Energy ( D ), a prominent player in the electricity industry, is embracing the shift....

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