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NextEra Energy (NEE) Dips More Than Broader Markets: What You Should Know

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NextEra Energy (NEE - Free Report) closed at $73.35 in the latest trading session, marking a -1.03% move from the prior day. This change lagged the S&P 500's 0.11% loss on the day.

Heading into today, shares of the parent company of Florida Power & Light Co. Had gained 1.01% over the past month, outpacing the Utilities sector's loss of 3.31% and lagging the S&P 500's gain of 2.23% 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 $0.68 per share. This would mark year-over-year growth of 4.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.06 billion, up 20.47% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.51 per share and revenue of $20.14 billion, which would represent changes of +8.66% and +11.88%, respectively, from the prior year.

Any recent changes to analyst estimates for NEE should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.24% higher within the past month. NEE is currently a Zacks Rank #3 (Hold).

Digging into valuation, NEE currently has a Forward P/E ratio of 29.48. This represents a premium compared to its industry's average Forward P/E of 18.45.

Investors should also note that NEE has a PEG ratio of 3.79 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 3.57 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 197, putting it in the bottom 23% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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