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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 at $89.39 in the latest trading session, marking a +0.77% move from the prior day. This change lagged the S&P 500's 1.41% gain on the day. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Coming into today, shares of the parent company of Florida Power & Light Co. Had gained 10.36% in the past month. In that same time, the Utilities sector gained 7.91%, while the S&P 500 gained 4.68%.
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 $0.77 per share, which would represent year-over-year growth of 2.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.26 billion, up 43.2% from the year-ago period.
NEE's full-year Zacks Consensus Estimates are calling for earnings of $2.88 per share and revenue of $20.4 billion. These results would represent year-over-year changes of +12.94% and +19.5%, respectively.
It is also important to note the recent changes to analyst estimates for NextEra Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.64% higher. NextEra Energy is currently a Zacks Rank #2 (Buy).
Investors should also note NextEra Energy's current valuation metrics, including its Forward P/E ratio of 30.8. Its industry sports an average Forward P/E of 19.88, so we one might conclude that NextEra Energy is trading at a premium comparatively.
Investors should also note that NEE has a PEG ratio of 3.31 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3.32 based on yesterday's closing prices.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.
To follow NEE in the coming trading sessions, be sure to utilize 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 at $89.39 in the latest trading session, marking a +0.77% move from the prior day. This change lagged the S&P 500's 1.41% gain on the day. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Coming into today, shares of the parent company of Florida Power & Light Co. Had gained 10.36% in the past month. In that same time, the Utilities sector gained 7.91%, while the S&P 500 gained 4.68%.
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 $0.77 per share, which would represent year-over-year growth of 2.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.26 billion, up 43.2% from the year-ago period.
NEE's full-year Zacks Consensus Estimates are calling for earnings of $2.88 per share and revenue of $20.4 billion. These results would represent year-over-year changes of +12.94% and +19.5%, respectively.
It is also important to note the recent changes to analyst estimates for NextEra Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.64% higher. NextEra Energy is currently a Zacks Rank #2 (Buy).
Investors should also note NextEra Energy's current valuation metrics, including its Forward P/E ratio of 30.8. Its industry sports an average Forward P/E of 19.88, so we one might conclude that NextEra Energy is trading at a premium comparatively.
Investors should also note that NEE has a PEG ratio of 3.31 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Utility - Electric Power stocks are, on average, holding a PEG ratio of 3.32 based on yesterday's closing prices.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.
To follow NEE in the coming trading sessions, be sure to utilize Zacks.com.