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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 $85.34, marking a +1.61% move from the previous day. This move outpaced the S&P 500's daily gain of 0.03%.

Coming into today, shares of the parent company of Florida Power & Light Co. Had gained 5.75% in the past month. In that same time, the Utilities sector gained 3.52%, while the S&P 500 gained 3.02%.

NEE will be looking to display strength as it nears its next earnings release. In that report, analysts expect NEE to post earnings of $0.71 per share. This would mark year-over-year growth of 5.97%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.68 billion, up 18.78% from the year-ago period.

NEE's full-year Zacks Consensus Estimates are calling for earnings of $2.52 per share and revenue of $19.23 billion. These results would represent year-over-year changes of +9.09% and +6.85%, respectively.

Any recent changes to analyst estimates for NEE should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% lower. NEE is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, NEE currently has a Forward P/E ratio of 33.35. For comparison, its industry has an average Forward P/E of 19.28, which means NEE is trading at a premium to the group.

Meanwhile, NEE's PEG ratio is currently 4.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Utility - Electric Power industry currently had an average PEG ratio of 3.64 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 25% 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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