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NextEra Energy (NEE) closed the most recent trading day at $70.81, moving -0.08% from the previous trading session. This change lagged the S&P 500's 0.22% gain on the day. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.2%.
Coming into today, shares of the parent company of Florida Power & Light Co. Had gained 0.58% in the past month. In that same time, the Utilities sector lost 8.49%, while the S&P 500 lost 8.32%.
NextEra Energy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.75, up 5.63% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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 $2.84 per share and revenue of $20.45 billion. These totals would mark changes of +11.37% and +19.82%, respectively, from last year.
Any recent changes to analyst estimates for NextEra Energy should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. 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 1.13% higher. NextEra Energy is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, NextEra Energy is holding a Forward P/E ratio of 24.97. This valuation marks a premium compared to its industry's average Forward P/E of 17.58.
We can also see that NEE currently has a PEG ratio of 2.72. 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. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3 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 144, which puts it in the bottom 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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