NextEra Energy (NEE) closed the most recent trading day at $271.82, moving -1.57% from the previous trading session. This change was narrower than the S&P 500's 1.71% loss on the day. Elsewhere, the Dow lost 0.98%, while the tech-heavy Nasdaq lost 1.87%.
Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had gained 2.92% over the past month. This has outpaced the Utilities sector's loss of 3.45% and the S&P 500's loss of 9.13% in that time.
Investors will be hoping for strength from NEE as it approaches its next earnings release. On that day, NEE is projected to report earnings of $1.95 per share, which would represent a year-over-year decline of 11.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.61 billion, up 13.06% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.04 per share and revenue of $20.35 billion, which would represent changes of +8% and +5.95%, respectively, from the prior year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.31% lower. NEE currently has a Zacks Rank of #3 (Hold).
Digging into valuation, NEE currently has a Forward P/E ratio of 30.54. This represents a premium compared to its industry's average Forward P/E of 20.27.
Investors should also note that NEE has a PEG ratio of 3.96 right now. 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. The Utility - Electric Power was holding an average PEG ratio of 4.11 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 111, putting it in the top 44% 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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