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NextEra Energy (NEE) Gains As Market Dips: What You Should Know

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NextEra Energy (NEE - Free Report) closed at $86.44 in the latest trading session, marking a +1.66% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.13%.

Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had gained 5.59% over the past month. This has outpaced the Utilities sector's gain of 1.54% and the S&P 500's gain of 2.07% 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 $0.71 per share. This would mark year-over-year growth of 5.97%. Our most recent consensus estimate is calling for quarterly revenue of $5.69 billion, up 18.98% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.52 per share and revenue of $18.8 billion, which would represent changes of +9.09% and +4.47%, respectively, from the prior year.

Investors should also note any 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.

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. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. NEE is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that NEE has a Forward P/E ratio of 33.72 right now. Its industry sports an average Forward P/E of 19.28, so we one might conclude that NEE is trading at a premium comparatively.

Investors should also note that NEE has a PEG ratio of 4.05 right now. 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 3.62 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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