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

NextEra Energy (NEE) closed at $80.32 in the latest trading session, marking a -1.99% move from the prior day. This change lagged the S&P 500's daily gain of 2.57%. Meanwhile, the Dow gained 2%, and the Nasdaq, a tech-heavy index, added 0.3%.

Coming into today, shares of the parent company of Florida Power & Light Co. Had gained 8.6% in the past month. In that same time, the Utilities sector gained 1.42%, while the S&P 500 lost 7.68%.

NextEra Energy will be looking to display strength as it nears its next earnings release. In that report, analysts expect NextEra Energy to post earnings of $0.68 per share. This would mark year-over-year growth of 1.49%. Our most recent consensus estimate is calling for quarterly revenue of $5.03 billion, up 35.06% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.79 per share and revenue of $22.98 billion. These totals would mark changes of +9.41% and +34.63%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for NextEra Energy. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 0.59% lower within the past month. NextEra Energy is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that NextEra Energy has a Forward P/E ratio of 29.39 right now. For comparison, its industry has an average Forward P/E of 18.52, which means NextEra Energy is trading at a premium to the group.

Meanwhile, NEE's PEG ratio is currently 3.33. 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 3.45 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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