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NextEra Energy (NEE) Gains But Lags Market: What You Should Know

·3 min read

NextEra Energy (NEE) closed the most recent trading day at $90.27, moving +0.03% from the previous trading session. This change lagged the S&P 500's 0.66% gain on the day. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 0.05%.

Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had gained 0.51% over the past month. This has lagged the Utilities sector's gain of 1.58% and outpaced the S&P 500's loss of 3.79% in that time.

Wall Street will be looking for positivity from NextEra Energy as it approaches its next earnings report date. In that report, analysts expect NextEra Energy to post earnings of $0.77 per share. This would mark year-over-year growth of 2.67%. Meanwhile, our latest consensus estimate is calling for revenue of $6.16 billion, up 40.94% from the prior-year quarter.

NEE's full-year Zacks Consensus Estimates are calling for earnings of $2.89 per share and revenue of $20.37 billion. These results would represent year-over-year changes of +13.33% and +19.33%, respectively.

Investors should also note any recent changes to analyst estimates for NextEra Energy. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.52% higher within the past month. NextEra Energy is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note NextEra Energy's current valuation metrics, including its Forward P/E ratio of 31.24. Its industry sports an average Forward P/E of 19.93, so we one might conclude that NextEra Energy is trading at a premium comparatively.

It is also worth noting that NEE currently has a PEG ratio of 3.23. 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 3.35 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 67, which puts it in the top 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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