In the latest trading session, NextEra Energy (NEE) closed at $283.12, marking a -0.36% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.48%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, lost 0.29%.
Heading into today, shares of the parent company of Florida Power & Light Co. Had gained 1.78% over the past month, outpacing the Utilities sector's loss of 1.5% and the S&P 500's loss of 4.3% in that time.
Wall Street will be looking for positivity from NEE as it approaches its next earnings report date. In that report, analysts expect NEE to post earnings of $2.73 per share. This would mark year-over-year growth of 14.23%. Meanwhile, our latest consensus estimate is calling for revenue of $5.59 billion, up 0.39% from the prior-year quarter.
NEE's full-year Zacks Consensus Estimates are calling for earnings of $9.16 per share and revenue of $20.08 billion. These results would represent year-over-year changes of +9.44% and +4.57%, respectively.
It is also important to note the recent changes to analyst estimates for NEE. These recent revisions tend to reflect the evolving nature of short-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. 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, the Zacks Consensus EPS estimate has moved 0.26% 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 31.03 right now. For comparison, its industry has an average Forward P/E of 16.83, which means NEE is trading at a premium to the group.
Meanwhile, NEE's PEG ratio is currently 3.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3.47 based on yesterday's closing prices.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
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