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NextEra Energy (NEE) Stock Sinks As Market Gains: What You Should Know
NextEra Energy (NEE - Free Report) closed the most recent trading day at $81.82, moving -0.93% from the previous trading session. This change lagged the S&P 500's 1.89% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.
Coming into today, shares of the parent company of Florida Power & Light Co. Had lost 0.9% in the past month. In that same time, the Utilities sector gained 0.8%, while the S&P 500 gained 2.3%.
NextEra Energy will be looking to display strength as it nears its next earnings release, which is expected to be January 25, 2023. In that report, analysts expect NextEra Energy to post earnings of $0.51 per share. This would mark year-over-year growth of 24.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.74 billion, up 13.82% from the year-ago period.
Any recent changes to analyst estimates for NextEra Energy should also be noted by investors. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. NextEra Energy is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, NextEra Energy is holding a Forward P/E ratio of 26.47. For comparison, its industry has an average Forward P/E of 17.07, which means NextEra Energy is trading at a premium to the group.
We can also see that NEE currently has a PEG ratio of 2.74. 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 3.14 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 43% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.