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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 $78.69 in the latest trading session, marking a +0.22% move from the prior day. This change outpaced the S&P 500's 1.64% loss on the day. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 0.41%.
Heading into today, shares of the parent company of Florida Power & Light Co. Had gained 9.3% over the past month, outpacing the Utilities sector's gain of 5.47% and the S&P 500's gain of 0.73% in that time.
NextEra Energy will be looking to display strength as it nears its next earnings release. On that day, NextEra Energy is projected to report earnings of $0.75 per share, which would represent year-over-year growth of 5.63%. Meanwhile, our latest consensus estimate is calling for revenue of $5.66 billion, up 44.05% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.81 per share and revenue of $21.1 billion, which would represent changes of +10.2% and +23.59%, respectively, from the prior year.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.12% 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 27.91. For comparison, its industry has an average Forward P/E of 19.65, which means NextEra Energy is trading at a premium to the group.
Also, we should mention that NEE has a PEG ratio of 3.16. 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. The Utility - Electric Power was holding an average PEG ratio of 3.45 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 34% 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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NextEra Energy (NEE) Gains As Market Dips: What You Should Know
NextEra Energy (NEE - Free Report) closed at $78.69 in the latest trading session, marking a +0.22% move from the prior day. This change outpaced the S&P 500's 1.64% loss on the day. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 0.41%.
Heading into today, shares of the parent company of Florida Power & Light Co. Had gained 9.3% over the past month, outpacing the Utilities sector's gain of 5.47% and the S&P 500's gain of 0.73% in that time.
NextEra Energy will be looking to display strength as it nears its next earnings release. On that day, NextEra Energy is projected to report earnings of $0.75 per share, which would represent year-over-year growth of 5.63%. Meanwhile, our latest consensus estimate is calling for revenue of $5.66 billion, up 44.05% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.81 per share and revenue of $21.1 billion, which would represent changes of +10.2% and +23.59%, respectively, from the prior year.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.12% 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 27.91. For comparison, its industry has an average Forward P/E of 19.65, which means NextEra Energy is trading at a premium to the group.
Also, we should mention that NEE has a PEG ratio of 3.16. 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. The Utility - Electric Power was holding an average PEG ratio of 3.45 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 34% 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.