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NextEra Energy (NEE) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

NextEra Energy (NEE) closed at $218.49 in the latest trading session, marking a -1.02% move from the prior day. This change lagged the S&P 500's daily loss of 0.07%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq lost 0.22%.

Coming into today, shares of the parent company of Florida Power & Light Co. Had gained 1.65% in the past month. In that same time, the Utilities sector gained 3.73%, while the S&P 500 gained 4.58%.

Wall Street will be looking for positivity from NEE as it approaches its next earnings report date. In that report, analysts expect NEE to post earnings of $2.19 per share. This would mark year-over-year growth of 0.31%. Our most recent consensus estimate is calling for quarterly revenue of $5.24 billion, up 18.54% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.38 per share and revenue of $18.99 billion, which would represent changes of +8.81% and +13.43%, respectively, from the prior year.

Any recent changes to analyst estimates for NEE should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate has moved 0.3% higher. NEE currently has a Zacks Rank of #3 (Hold).

Digging into valuation, NEE currently has a Forward P/E ratio of 26.39. Its industry sports an average Forward P/E of 21.05, so we one might conclude that NEE is trading at a premium comparatively.

We can also see that NEE currently has a PEG ratio of 3.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Utility - Electric Power industry currently had an average PEG ratio of 3.89 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 40% of all 250+ industries.

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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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