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

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In the latest trading session, NextEra Energy (NEE - Free Report) closed at $75.91, marking a +0.77% move from the previous day. This move outpaced the S&P 500's daily gain of 0.13%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.15%.

Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had gained 1.59% over the past month. This has outpaced the Utilities sector's gain of 0.69% and lagged the S&P 500's gain of 2.59% in that time.

NEE will be looking to display strength as it nears its next earnings release. In that report, analysts expect NEE to post earnings of $0.38 per share. This would mark year-over-year growth of 5.56%. Meanwhile, our latest consensus estimate is calling for revenue of $4.87 billion, up 6.13% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.29 per share and revenue of $19.06 billion, which would represent changes of +9.57% and -0.73%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for NEE. These revisions help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. NEE currently has a Zacks Rank of #4 (Sell).

Digging into valuation, NEE currently has a Forward P/E ratio of 32.95. For comparison, its industry has an average Forward P/E of 17.42, which means NEE is trading at a premium to the group.

Investors should also note that NEE has a PEG ratio of 4.16 right now. 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. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3.95 based on yesterday's closing prices.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% 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.

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