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In the latest trading session, NextEra Energy (NEE) closed at $82.04, marking a -0.59% move from the previous day. This change was narrower than the S&P 500's 0.72% loss on the day. Meanwhile, the Dow lost 0.57%, and the Nasdaq, a tech-heavy index, lost 0.87%.
Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had gained 9.95% over the past month. This has outpaced the Utilities sector's gain of 2.34% and the S&P 500's gain of 4.69% in that time.
Wall Street will be looking for positivity from NEE as it approaches its next earnings report date. This is expected to be January 26, 2021. On that day, NEE is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 8.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.94 billion, up 7.67% from the year-ago period.
Investors might also notice recent changes to analyst estimates for NEE. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. NEE is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that NEE has a Forward P/E ratio of 32.95 right now. Its industry sports an average Forward P/E of 17.43, so we one might conclude that NEE is trading at a premium comparatively.
We can also see that NEE currently has a PEG ratio of 4.1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Utility - Electric Power was holding an average PEG ratio of 3.54 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 32% 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.
To follow NEE in the coming trading sessions, be sure to utilize Zacks.com.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
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