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NextEra Energy (NEE) Gains But Lags Market: What You Should Know
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In the latest trading session, NextEra Energy (NEE - Free Report) closed at $74.35, marking a +0.5% move from the previous day. This move lagged the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq lost 8.94%.
Heading into today, shares of the parent company of Florida Power & Light Co. Had lost 4.59% over the past month, lagging the Utilities sector's loss of 3.2% and the S&P 500's gain of 5.41% in that time.
Wall Street will be looking for positivity from NextEra Energy as it approaches its next earnings report date. In that report, analysts expect NextEra Energy to post earnings of $0.78 per share. This would mark a year-over-year decline of 3.7%. Meanwhile, our latest consensus estimate is calling for revenue of $6.59 billion, up 27.21% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.11 per share and revenue of $26.48 billion. These totals would mark changes of +7.24% and +26.37%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for NextEra Energy. These revisions help to show the ever-changing nature of 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NextEra Energy is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that NextEra Energy has a Forward P/E ratio of 23.81 right now. Its industry sports an average Forward P/E of 16.77, so we one might conclude that NextEra Energy is trading at a premium comparatively.
Meanwhile, NEE's PEG ratio is currently 2.84. 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. NEE's industry had an average PEG ratio of 2.78 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% 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.
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NextEra Energy (NEE) Gains But Lags Market: What You Should Know
In the latest trading session, NextEra Energy (NEE - Free Report) closed at $74.35, marking a +0.5% move from the previous day. This move lagged the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq lost 8.94%.
Heading into today, shares of the parent company of Florida Power & Light Co. Had lost 4.59% over the past month, lagging the Utilities sector's loss of 3.2% and the S&P 500's gain of 5.41% in that time.
Wall Street will be looking for positivity from NextEra Energy as it approaches its next earnings report date. In that report, analysts expect NextEra Energy to post earnings of $0.78 per share. This would mark a year-over-year decline of 3.7%. Meanwhile, our latest consensus estimate is calling for revenue of $6.59 billion, up 27.21% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.11 per share and revenue of $26.48 billion. These totals would mark changes of +7.24% and +26.37%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for NextEra Energy. These revisions help to show the ever-changing nature of 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NextEra Energy is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that NextEra Energy has a Forward P/E ratio of 23.81 right now. Its industry sports an average Forward P/E of 16.77, so we one might conclude that NextEra Energy is trading at a premium comparatively.
Meanwhile, NEE's PEG ratio is currently 2.84. 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. NEE's industry had an average PEG ratio of 2.78 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% 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.