Back to top

Image: Bigstock

NextEra Energy (NEE) Stock Moves -0.72%: What You Should Know

Read MoreHide Full Article

NextEra Energy (NEE - Free Report) closed the latest trading day at $79.93, indicating a -0.72% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 2.12%. Elsewhere, the Dow lost 1.51%, while the tech-heavy Nasdaq lost 3.26%.

The parent company of Florida Power & Light Co.'s stock has climbed by 4.99% in the past month, exceeding the Utilities sector's gain of 1.74% and lagging the S&P 500's gain of 5.78%.

Analysts and investors alike will be keeping a close eye on the performance of NextEra Energy in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.01, indicating a 7.45% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $8.17 billion, showing a 13.88% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.39 per share and revenue of $27.67 billion, indicating changes of +6.94% and -1.59%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for NextEra Energy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. NextEra Energy is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note NextEra Energy's current valuation metrics, including its Forward P/E ratio of 23.73. This denotes a premium relative to the industry's average Forward P/E of 16.83.

Also, we should mention that NEE has a PEG ratio of 2.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Utility - Electric Power industry stood at 2.72 at the close of the market yesterday.

The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 67, finds itself in the top 27% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many 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