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NextEra Energy (NEE) Laps the Stock Market: Here's Why
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NextEra Energy (NEE - Free Report) ended the recent trading session at $81.19, demonstrating a +1.51% swing from the preceding day's closing price. This change outpaced the S&P 500's 1.16% gain on the day. On the other hand, the Dow registered a gain of 1.2%, and the technology-centric Nasdaq increased by 1.16%.
Coming into today, shares of the parent company of Florida Power & Light Co. Had gained 3.25% in the past month. In that same time, the Utilities sector gained 4.39%, while the S&P 500 gained 3.48%.
The investment community will be closely monitoring the performance of NextEra Energy in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.01, marking a 7.45% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.17 billion, up 13.88% from the year-ago period.
NEE's full-year Zacks Consensus Estimates are calling for earnings of $3.39 per share and revenue of $27.67 billion. These results would represent year-over-year changes of +6.94% and -1.59%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for NextEra Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. NextEra Energy is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, NextEra Energy is currently trading at a Forward P/E ratio of 23.57. This valuation marks a premium compared to its industry's average Forward P/E of 16.84.
It is also worth noting that NEE currently has a PEG ratio of 2.9. 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. As the market closed yesterday, the Utility - Electric Power industry was having an average PEG ratio of 2.77.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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NextEra Energy (NEE) Laps the Stock Market: Here's Why
NextEra Energy (NEE - Free Report) ended the recent trading session at $81.19, demonstrating a +1.51% swing from the preceding day's closing price. This change outpaced the S&P 500's 1.16% gain on the day. On the other hand, the Dow registered a gain of 1.2%, and the technology-centric Nasdaq increased by 1.16%.
Coming into today, shares of the parent company of Florida Power & Light Co. Had gained 3.25% in the past month. In that same time, the Utilities sector gained 4.39%, while the S&P 500 gained 3.48%.
The investment community will be closely monitoring the performance of NextEra Energy in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.01, marking a 7.45% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.17 billion, up 13.88% from the year-ago period.
NEE's full-year Zacks Consensus Estimates are calling for earnings of $3.39 per share and revenue of $27.67 billion. These results would represent year-over-year changes of +6.94% and -1.59%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for NextEra Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. NextEra Energy is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, NextEra Energy is currently trading at a Forward P/E ratio of 23.57. This valuation marks a premium compared to its industry's average Forward P/E of 16.84.
It is also worth noting that NEE currently has a PEG ratio of 2.9. 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. As the market closed yesterday, the Utility - Electric Power industry was having an average PEG ratio of 2.77.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.