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NextEra Energy (NEE) Gains As Market Dips: What You Should Know

Zacks Equity Research
·3 mins read

NextEra Energy (NEE) closed the most recent trading day at $290.28, moving +0.82% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.4%. Meanwhile, the Dow lost 1.34%, and the Nasdaq, a tech-heavy index, lost 1.57%.

Heading into today, shares of the parent company of Florida Power & Light Co. Had gained 3.82% over the past month, outpacing the Utilities sector's gain of 2.54% and the S&P 500's loss of 0.46% in that time.

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 $2.73 per share. This would mark year-over-year growth of 14.23%. Our most recent consensus estimate is calling for quarterly revenue of $5.59 billion, up 0.39% from the year-ago period.

NEE's full-year Zacks Consensus Estimates are calling for earnings of $9.16 per share and revenue of $20.08 billion. These results would represent year-over-year changes of +9.44% and +4.57%, respectively.

Any recent changes to analyst estimates for NEE should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.26% 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 31.44 right now. This valuation marks a premium compared to its industry's average Forward P/E of 17.29.

Also, we should mention that NEE has a PEG ratio of 3.96. 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. The Utility - Electric Power was holding an average PEG ratio of 3.61 at yesterday's closing price.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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Zacks Investment Research