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

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In the latest trading session, NextEra Energy (NEE) closed at $78.71, marking a -1.77% move from the previous day. This move lagged the S&P 500's daily gain of 1.92%. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.16%.

Heading into today, shares of the parent company of Florida Power & Light Co. Had gained 13.07% over the past month, outpacing the Utilities sector's loss of 1.24% and the S&P 500's gain of 1.54% in that time.

NextEra Energy will be looking to display strength as it nears its next earnings release, which is expected to be July 22, 2022. In that report, analysts expect NextEra Energy to post earnings of $0.74 per share. This would mark year-over-year growth of 4.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.67 billion, up 44.47% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.85 per share and revenue of $20.45 billion. These totals would mark changes of +11.76% and +19.82%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for NextEra Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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 0.88% higher within the past month. NextEra Energy is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that NextEra Energy has a Forward P/E ratio of 28.1 right now. This represents a premium compared to its industry's average Forward P/E of 18.71.

Also, we should mention that NEE has a PEG ratio of 3.02. 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. NEE's industry had an average PEG ratio of 3.18 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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