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Reasons to Add NextEra Energy (NEE) to Your Portfolio Now

NextEra Energy Inc.’s NEE earnings estimates have been revised upward over the past 60 days, reflecting analysts’ optimism surrounding the stock. The Zacks Consensus Estimate for the company's 2022 and 2023 earnings has moved up 0.4% and 0.3%, respectively, during the said period.

NextEra Energy and its subsidiaries are engaged in the generation, transmission, distribution and sale of electric energy. The company reported average earnings surprise of 6.34% in the last four reported quarters.
 
Let’s focus on the factors that make NextEra Energy a good investment option at the moment.

Return on Equity (ROE)

NextEra Energy’s ROE of 12.27% compared with the industry average of 10.2% indicates that it is more efficient in utilizing shareholders’ funds than its industry peers.

Strong Investment Plan

NextEra Energy has well-chalked-out plans to invest $85-$95 billion in different projects during 2022-2025. These investments will be directed toward modernizing and strengthening the company’s existing infrastructure, enabling it to better serve its expanding customer base.

These investments will also help the company produce more electricity from clean sources, lower carbon emissions from the production process and achieve the plan of reducing the carbon dioxide emission rate to 67% by 2025 from a 2005 base.

Long-Term Growth and Dividend Yield

The company’s long-term (three- to five-year) earnings growth is projected at 9.7%, courtesy of well-chalked-out capital investment plans, natural gas pipeline projects, renewable generation assets and acquisitions of natural gas assets.

Its current dividend yield is 1.95% compared with the Zacks S&P 500 composite’s average of 1.65%.

Price Movement

In the past six months, NextEra Energy’s shares have gained 21.1% compared with the industry’s growth of 1.7%.

 

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

 

Zacks Rank & Other Key Picks

NextEra Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks from the same industry are Alliant Energy LNT, NiSource NI and NRG Energy NRG, each currently carrying a Zacks Rank #2.

Long-term earnings growth of Alliant Energy, NiSource and NRG Energy is projected at 5.9%, 6.8% and 12.1%, respectively.

The Zacks Consensus Estimate for 2022 earnings for Alliant Energy, NiSource and NRG Energy has moved up 0.4%, 0.7% and 21%, respectively, in the past 60 days.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

NextEra Energy, Inc. (NEE) : Free Stock Analysis Report

NiSource, Inc (NI) : Free Stock Analysis Report

NRG Energy, Inc. (NRG) : Free Stock Analysis Report

Alliant Energy Corporation (LNT) : Free Stock Analysis Report

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Zacks Investment Research

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