Is DTE Energy Stock Outperforming the Nasdaq?

DTE Energy Company (DTE), headquartered in Detroit, Michigan, develops and manages energy-related businesses and services. Valued at $28.3 billion by market cap, the company generates, purchases, transmits, distributes, and sells electric energy. DTE is also involved in gas pipelines and storage, unconventional gas exploration, development, and production. 

Companies worth $10 billion or more are generally described as “large-cap stocks,” and DTE perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the utilities - regulated electric industry. 

Despite its notable strength, DTE shares touched their 52-week high of $137.03 in the last trading session. Over the past three months, DTE stock gained 14%, outperforming the Nasdaq Composite’s ($NASX) 9.6% dip during the same time frame.

In the longer term, shares of DTE rose 13.4% on a YTD basis and climbed 24.5% over the past 52 weeks, outperforming NASX’s YTD losses of 8.4% and 8.1% returns over the last year.

To confirm the bullish trend, DTE has been trading above its 50-day moving average since early February. The stock is trading above its 200-day moving average over the past year, experiencing some fluctuations.

DTE Energy's success can be attributed to its strong capital investment program for maintaining and improving its utility infrastructure, including significant investments in renewable energy generation. The company has added 2,300 MW of renewable energy capacity and is developing a 220 MW battery storage facility. Additionally, DTE Energy's non-utility businesses are helping to diversify its earnings.

On Feb. 13, DTE shares closed up more than 2% after reporting its Q4 results. Its operating EPS of $1.51 beat Wall Street expectations of $1.46. DTE Energy expects full-year operating EPS in the range of $7.09 to $7.23.

In the competitive arena of utilities - regulated electric, Entergy Corporation (ETR) has taken the lead over DTE, showing resilience with a 64.3% uptick over the past 52 weeks but lagged behind the stock with a 11.6% gain on a YTD basis.

Wall Street analysts are moderately bullish on DTE’s prospects. The stock has a consensus “Moderate Buy” rating from the 19 analysts covering it, and the mean price target of $139.87 suggests a potential upside of 2.1% from current price levels.