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NextEra Energy (NEE) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, NextEra Energy (NEE - Free Report) closed at $76.59, marking a +0.63% move from the previous day. This move outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.33%.
Heading into today, shares of the parent company of Florida Power & Light Co. Had gained 8.93% over the past month, outpacing the Utilities sector's gain of 3.48% and the S&P 500's gain of 1.72% 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 $0.80, up 8.11% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.92 billion, up 104.81% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.12 per share and revenue of $26.64 billion, which would represent changes of +7.59% and +27.14%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.21% higher within the past month. NextEra Energy currently has a Zacks Rank of #3 (Hold).
Investors should also note NextEra Energy's current valuation metrics, including its Forward P/E ratio of 24.38. This valuation marks a premium compared to its industry's average Forward P/E of 17.2.
We can also see that NEE currently has a PEG ratio of 2.7. 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. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.89 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 98, which puts it in the top 39% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.