Back to top

Image: Bigstock

NextEra Energy (NEE) Advances While Market Declines: Some Information for Investors

Read MoreHide Full Article

NextEra Energy (NEE - Free Report) closed the most recent trading day at $61.78, moving +0.68% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.14%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq appreciated by 0.17%.

The parent company of Florida Power & Light Co.'s shares have seen an increase of 8.28% over the last month, surpassing the Utilities sector's gain of 1.85% and the S&P 500's gain of 5.34%.

Analysts and investors alike will be keeping a close eye on the performance of NextEra Energy in its upcoming earnings disclosure. On that day, NextEra Energy is projected to report earnings of $0.75 per share, which would represent a year-over-year decline of 10.71%. At the same time, our most recent consensus estimate is projecting a revenue of $6.39 billion, reflecting a 4.79% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $3.44 per share and a revenue of $28.45 billion, demonstrating changes of +8.52% and +1.21%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for NextEra Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.15% increase. NextEra Energy is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note NextEra Energy's current valuation metrics, including its Forward P/E ratio of 17.83. This valuation marks a premium compared to its industry's average Forward P/E of 14.91.

Meanwhile, NEE's PEG ratio is currently 2.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Utility - Electric Power industry had an average PEG ratio of 2.44.

The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 158, this industry ranks in the bottom 38% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


NextEra Energy, Inc. (NEE) - free report >>

Published in