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NextEra Energy (NEE) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

NextEra Energy (NEE) closed the most recent trading day at $212.36, moving +1.17% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.36%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 0.27%.

Heading into today, shares of the parent company of Florida Power & Light Co. Had gained 1.78% over the past month, lagging the Utilities sector's gain of 1.93% and the S&P 500's gain of 3.98% in that time.

NEE will be looking to display strength as it nears its next earnings release, which is expected to be July 24, 2019. In that report, analysts expect NEE to post earnings of $2.29 per share. This would mark year-over-year growth of 8.53%. Our most recent consensus estimate is calling for quarterly revenue of $4.59 billion, up 12.82% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.36 per share and revenue of $18.43 billion. These totals would mark changes of +8.57% and +10.07%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for NEE. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. NEE is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that NEE has a Forward P/E ratio of 25.1 right now. This valuation marks a premium compared to its industry's average Forward P/E of 20.15.

Also, we should mention that NEE has a PEG ratio of 3.13. 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 was holding an average PEG ratio of 3.87 at yesterday's closing price.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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.

To follow NEE in the coming trading sessions, be sure to utilize Zacks.com.

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