NextEra Energy (NEE) Rises Yet Lags Behind Market: Some Facts Worth Knowing
In the latest market close, NextEra Energy (NEE) reached $60.17, with a +0.15% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 0.63%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.82%.
The the stock of parent company of Florida Power & Light Co. Has risen by 5.35% in the past month, leading the Utilities sector's gain of 2.15% and the S&P 500's gain of 1.76%.
The investment community will be closely monitoring the performance of NextEra Energy in its forthcoming earnings report. In that report, analysts expect NextEra Energy to post earnings of $0.75 per share. This would mark a year-over-year decline of 10.71%. Meanwhile, the latest consensus estimate predicts the revenue to be $6.39 billion, indicating a 4.79% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.44 per share and a revenue of $28.45 billion, representing changes of +8.52% and +1.21%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for NextEra Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% increase. Currently, NextEra Energy is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, NextEra Energy is currently trading at a Forward P/E ratio of 17.47. This indicates a premium in contrast to its industry's Forward P/E of 14.76.
It is also worth noting that NEE currently has a PEG ratio of 2.14. 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 the market closed yesterday, the Utility - Electric Power industry was having an average PEG ratio of 2.46.
The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 175, positioning it in the bottom 31% of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
