NextEra Energy (NEE) Gains But Lags Market: What You Should Know
In the latest trading session, NextEra Energy (NEE) closed at $74.15, marking a +0.76% move from the previous day. The stock lagged the S&P 500's daily gain of 1.13%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 1.28%.
Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had lost 2.05% over the past month. This has lagged the Utilities sector's gain of 6.7% and the S&P 500's gain of 10.9% in that time.
NEE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.38, up 5.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.87 billion, up 6.13% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.28 per share and revenue of $19.07 billion, which would represent changes of +9.09% and -0.72%, respectively, from the prior year.
Any recent changes to analyst estimates for NEE should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.22% lower. NEE is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note NEE's current valuation metrics, including its Forward P/E ratio of 32.21. Its industry sports an average Forward P/E of 17.92, 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 4.05. 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. Utility - Electric Power stocks are, on average, holding a PEG ratio of 4.05 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 200, which puts it in the bottom 22% 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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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
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