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Why NextEra Energy (NEE) Outpaced the Stock Market Today
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In the latest market close, NextEra Energy (NEE - Free Report) reached $50.24, with a +1.6% movement compared to the previous day. This change outpaced the S&P 500's 1.18% gain on the day. On the other hand, the Dow registered a gain of 0.87%, and the technology-centric Nasdaq increased by 1.6%.
Shares of the parent company of Florida Power & Light Co. Have depreciated by 25.36% over the course of the past month, underperforming the Utilities sector's loss of 6.84% and the S&P 500's loss of 5.17%.
The investment community will be paying close attention to the earnings performance of NextEra Energy in its upcoming release. The company's earnings per share (EPS) are projected to be $0.86, reflecting a 1.18% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.41 billion, up 10.36% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.11 per share and a revenue of $27.63 billion, indicating changes of +7.24% and +31.83%, respectively, from the former 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% downward. Right now, NextEra Energy possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, NextEra Energy is holding a Forward P/E ratio of 15.88. This expresses a premium compared to the average Forward P/E of 14.17 of its industry.
It's also important to note that NEE currently trades at a PEG ratio of 2. 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. As of the close of trade yesterday, the Utility - Electric Power industry held an average PEG ratio of 2.55.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Why NextEra Energy (NEE) Outpaced the Stock Market Today
In the latest market close, NextEra Energy (NEE - Free Report) reached $50.24, with a +1.6% movement compared to the previous day. This change outpaced the S&P 500's 1.18% gain on the day. On the other hand, the Dow registered a gain of 0.87%, and the technology-centric Nasdaq increased by 1.6%.
Shares of the parent company of Florida Power & Light Co. Have depreciated by 25.36% over the course of the past month, underperforming the Utilities sector's loss of 6.84% and the S&P 500's loss of 5.17%.
The investment community will be paying close attention to the earnings performance of NextEra Energy in its upcoming release. The company's earnings per share (EPS) are projected to be $0.86, reflecting a 1.18% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.41 billion, up 10.36% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.11 per share and a revenue of $27.63 billion, indicating changes of +7.24% and +31.83%, respectively, from the former 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% downward. Right now, NextEra Energy possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, NextEra Energy is holding a Forward P/E ratio of 15.88. This expresses a premium compared to the average Forward P/E of 14.17 of its industry.
It's also important to note that NEE currently trades at a PEG ratio of 2. 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. As of the close of trade yesterday, the Utility - Electric Power industry held an average PEG ratio of 2.55.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.