NextEra Energy (NEE) Gains As Market Dips: What You Should Know
In the latest trading session, NextEra Energy (NEE) closed at $76.82, marking a +1.48% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.33%.
Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had gained 3.27% over the past month. This has outpaced the Utilities sector's loss of 4.38% and the S&P 500's gain of 2.89% in that time.
NEE will be looking to display strength as it nears its next earnings release, which is expected to be July 23, 2021. In that report, analysts expect NEE to post earnings of $0.68 per share. This would mark year-over-year growth of 4.62%. Our most recent consensus estimate is calling for quarterly revenue of $5.06 billion, up 20.47% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.51 per share and revenue of $20.16 billion, which would represent changes of +8.66% and +12%, respectively, from the prior year.
It is also important to note the 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.24% higher within the past month. 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 30.11 right now. Its industry sports an average Forward P/E of 18.57, 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 3.87. 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 industry currently had an average PEG ratio of 3.59 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 30% 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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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
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