Goldman Sachs’ Stocks With Highest Consensus Returns: 42 Stocks With The Highest Consensus ROE

15. Dominion Energy, Inc. (NYSE:D)

Consensus ROE: 23%

Number of Hedge Fund Investors in Q2 2024: 27

Dominion Energy, Inc. (NYSE:D) is a diversified electrical utility that caters to the needs of commercial and industrial customers. During H1 2024, 38% of the firm’s revenue came from commercial customers while 32% were from commercial customers. These figures do not include the revenues of Virginia Power. Dominion Energy, Inc. (NYSE:D) has seen mixed performance this year particularly as colder weather led to dropping demand for electricity. This led to its EPS being shaved by $0.06 during the first quarter, and moving forward, the reversal of this trend could help the company. Dominion Energy, Inc. (NYSE:D) is also expanding its power generation to include an offshore wind project which is one of the largest of its kind in the world and aims to use a whopping 176 turbines to generate electricity. The firm aims to complete the project by 2026, and after initial issues have been taken care of, any slips on this could spell headwinds.

Dominion Energy, Inc. (NYSE:D)’s management commented on the wind project during the Q2 2024 earnings call. Here is what they said:

“On July 24, the joint proposed order was filed with the commission representing the final procedural step. We expect a final commission order during the third quarter with closing to follow shortly thereafter. And as it relates to CVOW, we received Affiliates Act approval, representing the first of two required Virginia approvals from the State Corporation Commission on June 26. Last week, SEC staff filed their comments on the Transfer’s Act and financing partner petition, the second of two required Virginia approvals. No other parties filed comments, and we consider the staff comments to be constructive. A hearing is scheduled for August 27, and we expect the final order later this year. In North Carolina, the financing requires affiliates agreement approval.

This week, the NCUC public staff were the only party to file comments and we consider their comments to be constructive. Next steps will be commissioned hearings, if requested, followed by a commission order. We continue to expect the CVOW financing partnership to be completed by the end of the year, and we look forward to continuing to work with all parties involved. Turning to financing on Slide 6. Since our last call, we successfully issued $2 billion in enhanced junior subordinated notes. These tax deductible securities received 50% equity credit from the credit rating agencies. We’ve also issued approximately $400 million of equity under our ATM program, representing 80% of the midpoint of our annual guidance as well as roughly $100 million under our DRIP programs.”