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

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NextEra Energy (NEE) closed the most recent trading day at $81.46, moving +1.58% from the previous trading session. This change lagged the S&P 500's 1.71% gain on the day.

Coming into today, shares of the parent company of Florida Power & Light Co. Had lost 5.22% in the past month. In that same time, the Utilities sector lost 2.53%, while the S&P 500 lost 2.25%.

Investors will be hoping for strength from NEE as it approaches its next earnings release, which is expected to be October 20, 2021. On that day, NEE is projected to report earnings of $0.72 per share, which would represent year-over-year growth of 7.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.73 billion, up 19.66% from the year-ago period.

NEE's full-year Zacks Consensus Estimates are calling for earnings of $2.52 per share and revenue of $18.81 billion. These results would represent year-over-year changes of +9.09% and +4.51%, respectively.

Investors might also notice recent changes to analyst estimates for NEE. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 31.8 right now. Its industry sports an average Forward P/E of 18.5, so we one might conclude that NEE is trading at a premium comparatively.

It is also worth noting that NEE currently has a PEG ratio of 3.82. 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. NEE's industry had an average PEG ratio of 3.48 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 172, which puts it in the bottom 33% 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.

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


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