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

Zacks Equity Research

NextEra Energy (NEE) closed the most recent trading day at $231.34, moving -1.06% from the previous trading session. This change lagged the S&P 500's 0.86% loss on the day. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq lost 1.13%.

Heading into today, shares of the parent company of Florida Power & Light Co. Had lost 1.9% over the past month, lagging the Utilities sector's loss of 0.81% and the S&P 500's gain of 3.66% in that time.

NEE will be looking to display strength as it nears its next earnings release. On that day, NEE is projected to report earnings of $1.53 per share, which would represent year-over-year growth of 2.68%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.69 billion, up 6.77% from the year-ago period.

NEE's full-year Zacks Consensus Estimates are calling for earnings of $8.37 per share and revenue of $19.27 billion. These results would represent year-over-year changes of +8.7% and +15.09%, respectively.

Investors might also notice recent changes to analyst estimates for NEE. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. NEE is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that NEE has a Forward P/E ratio of 27.93 right now. This represents a premium compared to its industry's average Forward P/E of 20.14.

Meanwhile, NEE's PEG ratio is currently 3.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3.81 based on yesterday's closing prices.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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