Why NextEra Energy (NEE) Outpaced the Stock Market Today
NextEra Energy (NEE) closed at $63.91 in the latest trading session, marking a +0.19% move from the prior day. This change outpaced the S&P 500's 0.11% gain on the day. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq depreciated by 0.12%.
The parent company of Florida Power & Light Co.'s stock has climbed by 15.9% in the past month, exceeding the Utilities sector's gain of 3.69% and the S&P 500's gain of 3.55%.
The upcoming earnings release of NextEra Energy will be of great interest to investors. On that day, NextEra Energy is projected to report earnings of $0.75 per share, which would represent a year-over-year decline of 10.71%. At the same time, our most recent consensus estimate is projecting a revenue of $6.39 billion, reflecting a 4.79% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.44 per share and a revenue of $28.45 billion, indicating changes of +8.52% and +1.21%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for NextEra Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.15% higher. NextEra Energy is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, NextEra Energy is presently being traded at a Forward P/E ratio of 18.53. This valuation marks a premium compared to its industry's average Forward P/E of 15.35.
Also, we should mention that NEE has a PEG ratio of 2.27. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Utility - Electric Power industry currently had an average PEG ratio of 2.5 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 142, putting it in the bottom 44% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
