NextEra Energy (NEE) Outpaces Stock Market Gains: What You Should Know
NextEra Energy (NEE) closed the latest trading day at $60.58, indicating a +0.61% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.14% for the day. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 0.16%.
Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had gained 3.52% over the past month. This has outpaced the Utilities sector's gain of 2.65% and lagged the S&P 500's gain of 4.89% in that time.
Analysts and investors alike will be keeping a close eye on the performance of NextEra Energy in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.51, indicating constancy compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.17 billion, up 0.14% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.12 per share and revenue of $27.52 billion, indicating changes of +7.59% and +31.32%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for NextEra Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. NextEra Energy is currently a Zacks Rank #2 (Buy).
With respect to valuation, NextEra Energy is currently being traded at a Forward P/E ratio of 19.3. This denotes a premium relative to the industry's average Forward P/E of 16.
One should further note that NEE currently holds a PEG ratio of 2.36. 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. By the end of yesterday's trading, the Utility - Electric Power industry had an average PEG ratio of 2.84.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 60, placing it within the top 24% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
