Back to top

Image: Bigstock

NextEra Energy (NEE) Stock Moves -0.65%: What You Should Know

Read MoreHide Full Article

NextEra Energy (NEE - Free Report) closed at $66.91 in the latest trading session, marking a -0.65% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.64%. Meanwhile, the Dow lost 1.08%, and the Nasdaq, a tech-heavy index, lost 1.82%.

Coming into today, shares of the parent company of Florida Power & Light Co. Had lost 0.8% in the past month. In that same time, the Utilities sector gained 2.05%, while the S&P 500 gained 0.89%.

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 $0.86 per share, which would represent year-over-year growth of 1.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.41 billion, up 10.31% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.12 per share and revenue of $27.61 billion. These totals would mark changes of +7.59% and +31.77%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for NextEra Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NextEra Energy currently has a Zacks Rank of #3 (Hold).

In terms of valuation, NextEra Energy is currently trading at a Forward P/E ratio of 21.62. Its industry sports an average Forward P/E of 16.22, 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 2.58 right now. 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. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.85 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 83, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

NextEra Energy, Inc. (NEE) - free report >>

Published in