Stock Analysis | Dominion Energy Outlook - A Mixed Bag for D

Market Snapshot

Takeaway: Dominion Energy (D) is currently showing a weak technical outlook and a negative price trend, despite decent fundamental scores.

News Highlights

Recent headlines include developments in various industries, from Tesla’s Optimus humanoid robot and bio-based material innovation to updates from Virtus Investment Partners and Harbinger Health. However, these stories don’t directly impact Dominion Energy, which operates in the energy sector. That said, global economic and market uncertainty—highlighted in Canada’s banking sector and U.S. catastrophe losses—could indirectly affect D’s stock if broader market risk appetite declines.

Analyst Views & Fundamentals

The recent analyst activity for D has been limited, with JP Morgan's Jeremy Tonet issuing a "Sell" rating within the last 20 days. The simple average rating is 2.00, and the performance-weighted rating is 1.61, both signaling strong pessimism. The rating is not consistent—there’s a wide dispersion, and the single active analyst’s rating does not match the current stock price trend, which has fallen by 5.99% recently.

Key Fundamentals:

• Return on Equity (Annualized): 10.54% (Internal diagnostic score: 1.00)
• Net Profit Attributable to Parent Company Shareholders / Net Profit (%): 93.44% (Internal diagnostic score: 2.00)
• Gross Profit Margin (%): 73.05% (Internal diagnostic score: 3.00)
• PE Ratio: 43.52 (Internal diagnostic score: 2.00)
• Total Profit YoY Growth (%): 86.13% (Internal diagnostic score: 3.00)
• Shareholders’ Equity Growth (YoY %): 1.31% (Internal diagnostic score: 3.00)
• Cash-UP (Liquidity metric): 0.15 (Internal diagnostic score: 1.00)
• Cost of Sales Ratio (%): 26.95% (Internal diagnostic score: 3.00)
• Asset-Market Value Ratio (Asset-MV): 1.52 (Internal diagnostic score: 3.00)

Overall, the fundamental score is 6.27, indicating moderate strength. While key metrics like gross margin and profit growth are strong, the PE is elevated, and liquidity is a concern due to a low Cash-UP score.

Money-Flow Trends

Big money is moving out of D, with all inflow ratios—ranging from small to extra-large—showing negative trends. The fund-flow score is 7.82, which is rated as "good," but this seems contradictory at first glance. In reality, the high score reflects the model's assessment of the directional consistency in outflows, not the volume. Put simply, large and consistent selling is better modeled than erratic inflows.

• Small inflow ratio: 0.49 (Negative)
• Medium inflow ratio: 0.49 (Negative)
• Large inflow ratio: 0.47 (Negative)
• Extra-large inflow ratio: 0.48 (Negative)

Both retail and institutional investors are trending downward, reinforcing the bearish technical signals.

Key Technical Signals

Dominion Energy’s technical outlook is weak, with 2 bearish indicators and 0 bullish in the last 5 days. The technical score is 3.36, and the model explicitly advises to avoid the stock due to its unclear trend and dominance of bearish signals.

Internal Diagnostic Scores for Recent Indicators:

• Williams %R Oversold: Score: 6.81 (Neutral rise potential)
• Bearish Engulfing Pattern: Score: 4.62 (Neutral rise potential)
• Ex-Dividend Date: Score: 1.00 (Strongly bearish signal)
• Dividend Record Date: Score: 1.00 (Strongly bearish signal)

Recent Chart Signals by Date:

• 2025-09-03: WR Oversold
• 2025-09-02: WR Oversold
• 2025-08-28: WR Oversold, Bearish Engulfing
• 2025-09-05: WR Oversold, Ex-Dividend Date, Dividend Record Date
• 2025-09-04: WR Oversold, Bearish Engulfing

The presence of dividend-related bearish signals on 2025-09-05 was particularly impactful, contributing to increased selling pressure. The bearish engulfing pattern and repeated WR Oversold signals suggest a lack of directional momentum and rising bearish sentiment.

Conclusion

With a technical score of 3.36 and weak market flow trends, Dominion Energy (D) appears to be in a vulnerable position. While fundamentals remain reasonably strong (6.27), the mismatch between fundamentals and price action suggests caution is warranted. Consider waiting for a clearer breakout or a more favorable technical setup before taking a position in D. Given the current signals, watching for a pullback or a retest of key support levels may be more prudent than entering on a downward trend.