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

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  • NEE

NextEra Energy (NEE) closed at $87.84 in the latest trading session, marking a +1.22% move from the prior day. This change outpaced the S&P 500's 1.18% loss on the day. Elsewhere, the Dow lost 1.34%, while the tech-heavy Nasdaq lost 0.92%.

Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had gained 1.59% over the past month. This has outpaced the Utilities sector's loss of 1.41% and the S&P 500's loss of 0.73% in that time.

NextEra Energy will be looking to display strength as it nears its next earnings release. In that report, analysts expect NextEra Energy to post earnings of $0.46 per share. This would mark year-over-year growth of 15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.19 billion, up 18.02% from the year-ago period.

NEE's full-year Zacks Consensus Estimates are calling for earnings of $2.53 per share and revenue of $18.69 billion. These results would represent year-over-year changes of +9.52% and +3.87%, respectively.

Any recent changes to analyst estimates for NextEra Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. NextEra Energy is currently a Zacks Rank #3 (Hold).

Looking at its valuation, NextEra Energy is holding a Forward P/E ratio of 34.32. Its industry sports an average Forward P/E of 18.16, so we one might conclude that NextEra Energy is trading at a premium comparatively.

Meanwhile, NEE's PEG ratio is currently 3.84. 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. The Utility - Electric Power industry currently had an average PEG ratio of 3.39 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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