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NextEra Energy (NEE) Gains But Lags Market: What You Should Know
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NextEra Energy (NEE - Free Report) closed the most recent trading day at $82.51, moving +0.65% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.24%. At the same time, the Dow added 1.55%, and the tech-heavy Nasdaq gained 0.44%.
Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had gained 9.18% over the past month. This has outpaced the Utilities sector's gain of 5.6% and the S&P 500's loss of 4.46% in that time.
Wall Street will be looking for positivity from NextEra Energy as it approaches its next earnings report date. The company is expected to report EPS of $0.68, up 1.49% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.03 billion, up 35.06% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.79 per share and revenue of $22.98 billion. These totals would mark changes of +9.41% and +34.63%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NextEra Energy. 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.
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 0.3% higher within the past month. NextEra Energy is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note NextEra Energy's current valuation metrics, including its Forward P/E ratio of 29.4. This valuation marks a premium compared to its industry's average Forward P/E of 18.51.
Meanwhile, NEE's PEG ratio is currently 3.33. 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 3.47 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 208, which puts it in the bottom 19% 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.
View the Zacks #1 Rank List
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NextEra Energy (NEE) Gains But Lags Market: What You Should Know
NextEra Energy (NEE - Free Report) closed the most recent trading day at $82.51, moving +0.65% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.24%. At the same time, the Dow added 1.55%, and the tech-heavy Nasdaq gained 0.44%.
Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had gained 9.18% over the past month. This has outpaced the Utilities sector's gain of 5.6% and the S&P 500's loss of 4.46% in that time.
Wall Street will be looking for positivity from NextEra Energy as it approaches its next earnings report date. The company is expected to report EPS of $0.68, up 1.49% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.03 billion, up 35.06% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.79 per share and revenue of $22.98 billion. These totals would mark changes of +9.41% and +34.63%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NextEra Energy. 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.
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 0.3% higher within the past month. NextEra Energy is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note NextEra Energy's current valuation metrics, including its Forward P/E ratio of 29.4. This valuation marks a premium compared to its industry's average Forward P/E of 18.51.
Meanwhile, NEE's PEG ratio is currently 3.33. 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 3.47 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 208, which puts it in the bottom 19% 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.