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NextEra Energy (NEE) Gains But Lags Market: What You Should Know
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NextEra Energy (NEE - Free Report) closed at $85.07 in the latest trading session, marking a +0.08% move from the prior day. This change lagged the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 8.98%.
Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had lost 2.36% over the past month. This has lagged the Utilities sector's gain of 2.66% and the S&P 500's gain of 1% in that time.
NextEra Energy will be looking to display strength as it nears its next earnings release, which is expected to be January 25, 2023. On that day, NextEra Energy is projected to report earnings of $0.51 per share, which would represent year-over-year growth of 24.39%. Meanwhile, our latest consensus estimate is calling for revenue of $5.74 billion, up 13.82% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for NextEra Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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 0.06% lower within the past month. NextEra Energy is currently a Zacks Rank #3 (Hold).
Investors should also note NextEra Energy's current valuation metrics, including its Forward P/E ratio of 27.24. This valuation marks a premium compared to its industry's average Forward P/E of 18.12.
Investors should also note that NEE has a PEG ratio of 2.82 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3.3 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 77, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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NextEra Energy (NEE) Gains But Lags Market: What You Should Know
NextEra Energy (NEE - Free Report) closed at $85.07 in the latest trading session, marking a +0.08% move from the prior day. This change lagged the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 8.98%.
Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had lost 2.36% over the past month. This has lagged the Utilities sector's gain of 2.66% and the S&P 500's gain of 1% in that time.
NextEra Energy will be looking to display strength as it nears its next earnings release, which is expected to be January 25, 2023. On that day, NextEra Energy is projected to report earnings of $0.51 per share, which would represent year-over-year growth of 24.39%. Meanwhile, our latest consensus estimate is calling for revenue of $5.74 billion, up 13.82% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for NextEra Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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 0.06% lower within the past month. NextEra Energy is currently a Zacks Rank #3 (Hold).
Investors should also note NextEra Energy's current valuation metrics, including its Forward P/E ratio of 27.24. This valuation marks a premium compared to its industry's average Forward P/E of 18.12.
Investors should also note that NEE has a PEG ratio of 2.82 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3.3 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 77, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.