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

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Earnings estimates for NextEra Energy Inc. (NEE - Free Report) have been revised upward over the past 60 days, reflecting analysts’ optimism surrounding the stock. The Zacks Consensus Estimate for 2019 and 2020 earnings has moved up 0.4% and 0.2%, respectively, during the said period.

NextEra Energy and its subsidiaries are engaged in generation, transmission, distribution, and sale of electric energy.
 
Let’s focus on the factors that make NextEra Energy a good investment option at the moment.

Price Movement

In the past six months, NextEra Energy’s shares have gained 12.8% compared with its industry’s growth of 11.8%.


Return on Equity (ROE)

NextEra Energy’s ROE of 10.01% compared with the industry average of 9.18% indicates efficiency in utilizing its shareholders’ funds.

Long-Term Growth and Dividend Yield

The company’s long-term (three to five years) earnings growth is pegged at 7.74%, courtesy of strong economic conditions, well chalked-out capital investment plan, natural gas pipeline projects, renewable generation assets and acquisition of natural gas assets.

The current dividend yield of the company is 2.61% compared with the Zacks S&P 500 Composite’s average of 1.96%.

Earnings Surprise Trend & Estimate Revision

NextEra Energy beat estimates in three out of the last four quarters, with the average positive surprise being 2.52%. Its earnings estimates for 2019 and 2020 indicate 9.09% and 8.12% year-over-year increase to $8.40 and $9.08 per share, respectively.

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.

Other top-ranked stocks from the same industry include Pinnacle West Capital Corporation (PNW - Free Report) , The Southern Company (SO - Free Report) and Xcel Energy Inc. (XEL - Free Report) , each holding a Zacks Rank of 2.

Pinnacle West Capital pulled off average positive earnings surprise of 13.29% in the last three quarters. The Zacks Consensus Estimate for 2019 earnings has been revised 1.03% upward to $4.86 per share over the past 60 days.

Southern Company reported average positive earnings surprise of 7.85% in the trailing four quarters. The Zacks Consensus Estimate for 2019 earnings has moved 0.7% north to $3.03 per share over the past 60 days.

Xcel Energy surpassed estimates in three out of the trailing four quarters, resulting in average positive surprise of 5.09%. The Zacks Consensus Estimate for 2019 earnings has moved 0.03% north to $2.62 over the past 60 days.

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