We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NextEra Energy (NEE) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
NextEra Energy (NEE - Free Report) closed at $83.94 in the latest trading session, marking a +0.29% move from the prior day. The stock lagged the S&P 500's daily gain of 0.51%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.1%.
Coming into today, shares of the parent company of Florida Power & Light Co. Had gained 10.95% in the past month. In that same time, the Utilities sector gained 8.36%, while the S&P 500 gained 5.51%.
Investors will be hoping for strength from NextEra Energy as it approaches its next earnings release. On that day, NextEra Energy is projected to report earnings of $0.67 per share, which would represent no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.05 billion, up 35.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.81 per share and revenue of $22.98 billion. These totals would mark changes of +10.2% and +34.63%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for NextEra Energy. These recent revisions tend to reflect the evolving nature of short-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.
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 0.9% higher. NextEra Energy is currently a Zacks Rank #3 (Hold).
In terms of valuation, NextEra Energy is currently trading at a Forward P/E ratio of 29.84. For comparison, its industry has an average Forward P/E of 19.16, which means NextEra Energy is trading at a premium to the group.
We can also see that NEE currently has a PEG ratio of 3.38. 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. NEE's industry had an average PEG ratio of 3.46 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 209, which puts it in the bottom 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
NextEra Energy (NEE) Gains But Lags Market: What You Should Know
NextEra Energy (NEE - Free Report) closed at $83.94 in the latest trading session, marking a +0.29% move from the prior day. The stock lagged the S&P 500's daily gain of 0.51%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.1%.
Coming into today, shares of the parent company of Florida Power & Light Co. Had gained 10.95% in the past month. In that same time, the Utilities sector gained 8.36%, while the S&P 500 gained 5.51%.
Investors will be hoping for strength from NextEra Energy as it approaches its next earnings release. On that day, NextEra Energy is projected to report earnings of $0.67 per share, which would represent no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.05 billion, up 35.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.81 per share and revenue of $22.98 billion. These totals would mark changes of +10.2% and +34.63%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for NextEra Energy. These recent revisions tend to reflect the evolving nature of short-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.
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 0.9% higher. NextEra Energy is currently a Zacks Rank #3 (Hold).
In terms of valuation, NextEra Energy is currently trading at a Forward P/E ratio of 29.84. For comparison, its industry has an average Forward P/E of 19.16, which means NextEra Energy is trading at a premium to the group.
We can also see that NEE currently has a PEG ratio of 3.38. 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. NEE's industry had an average PEG ratio of 3.46 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 209, which puts it in the bottom 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.