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NextEra Energy (NEE) Stock Sinks As Market Gains: What You Should Know

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NextEra Energy (NEE) closed the most recent trading day at $73.31, moving -0.24% from the previous trading session. This change lagged the S&P 500's 0.18% gain on the day.

Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had gained 0.51% over the past month. This has outpaced the Utilities sector's loss of 0.54% and lagged the S&P 500's gain of 2.43% in that time.

NEE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.69, up 6.15% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.06 billion, up 20.41% from the year-ago period.

NEE's full-year Zacks Consensus Estimates are calling for earnings of $2.51 per share and revenue of $20.56 billion. These results would represent year-over-year changes of +8.66% and +14.23%, respectively.

Any recent changes to analyst estimates for NEE should also be noted by investors. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 0.21% lower within the past month. NEE currently has a Zacks Rank of #3 (Hold).

In terms of valuation, NEE is currently trading at a Forward P/E ratio of 29.3. This represents a premium compared to its industry's average Forward P/E of 18.91.

Meanwhile, NEE's PEG ratio is currently 3.76. 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 industry currently had an average PEG ratio of 3.66 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 212, which puts it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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