NextEra Energy (NEE) Registers a Bigger Fall Than the Market: Important Facts to Note
NextEra Energy (NEE) closed the most recent trading day at $55.04, moving -0.94% from the previous trading session. This change lagged the S&P 500's 0.17% loss on the day. Meanwhile, the Dow lost 0.06%, and the Nasdaq, a tech-heavy index, lost 0.55%.
Coming into today, shares of the parent company of Florida Power & Light Co. Had lost 6.28% in the past month. In that same time, the Utilities sector gained 0.14%, while the S&P 500 gained 3.98%.
Market participants will be closely following the financial results of NextEra Energy in its upcoming release. The company's upcoming EPS is projected at $0.77, signifying an 8.33% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $6.33 billion, reflecting a 5.75% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.44 per share and a revenue of $28.26 billion, demonstrating changes of +8.52% and +0.54%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for NextEra Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.16% increase. NextEra Energy is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, NextEra Energy is presently being traded at a Forward P/E ratio of 16.13. This indicates a premium in contrast to its industry's Forward P/E of 14.44.
It is also worth noting that NEE currently has a PEG ratio of 1.97. 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. As of the close of trade yesterday, the Utility - Electric Power industry held an average PEG ratio of 2.57.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 41% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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
