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NextEra Energy (NEE) Gains But Lags Market: What You Should Know

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In the latest trading session, NextEra Energy (NEE - Free Report) closed at $79.29, marking a +1.1% move from the previous day. This change lagged the S&P 500's 1.49% gain on the day. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 2.56%.

Heading into today, shares of the parent company of Florida Power & Light Co. Had gained 6.46% over the past month, outpacing the Utilities sector's gain of 1.53% and the S&P 500's gain of 1.44% in that time.

Wall Street will be looking for positivity from NEE as it approaches its next earnings report date. The company is expected to report EPS of $0.38, up 5.56% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.87 billion, up 6.13% from the year-ago period.

Investors might also notice recent changes to analyst estimates for NEE. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% lower. NEE currently has a Zacks Rank of #4 (Sell).

In terms of valuation, NEE is currently trading at a Forward P/E ratio of 31.35. Its industry sports an average Forward P/E of 17.46, so we one might conclude that NEE is trading at a premium comparatively.

We can also see that NEE currently has a PEG ratio of 3.96. 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. The Utility - Electric Power industry currently had an average PEG ratio of 3.81 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 34% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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