Detroit, Michigan-based DTE Energy Company (DTE) is a diversified energy company that provides electricity and natural gas to millions of customers across Michigan. Valued at a market cap of $28.7 billion, the company is also engaged in non-utility businesses, including industrial energy services, renewable natural gas, and energy marketing and trading.
Shares of this utility company have outpaced the broader market over the past 52 weeks. DTE has surged 18.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.9%. Moreover, on a YTD basis, the stock is up 14.6%, compared to SPX’s 1% rise.
Zooming in further, DTE has also outperformed the Utilities Select Sector SPDR Fund’s (XLU) 14.6% uptick over the past 52 weeks and 9.4% return on a YTD basis.
On May 1, shares of DTE closed down marginally after its Q1 earnings release, despite delivering adjusted EPS of $2.10, which exceeded the forecasted figure by 6.1%. Adding to the positives, its bottom line improved 25.7% from the year-ago quarter, driven by robust profit growth in its gas and non-utility operations segments. However, operating earnings from its electric segment declined 24.2% year-over-year to $147 million, which might have weighed on investor sentiment. Looking ahead, DTE expects its fiscal 2025 operating EPS to range between $7.09 and $7.23.
For the current fiscal year, ending in December, analysts expect DTE’s EPS to grow 6% year over year to $7.24. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 19 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on 11 “Strong Buy,” one “Moderate Buy,” and seven “Hold” ratings.
This configuration is slightly less bullish than three months ago, with 12 analysts suggesting a “Strong Buy” rating.
On May 2, Evercore Inc. (EVR) analyst Durgesh Chopra maintained a “Buy” rating on DTE and set a price target of $145, which indicates a 4.8% potential upside from the current levels.
The mean price target of $143.73 represents a 3.9% premium from DTE’s current price levels, while the Street-high price target of $154 suggests an upside potential of 11.3%.
