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NextEra Energy (NEE) Registers a Bigger Fall Than the Market: Important Facts to Note

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NextEra Energy (NEE - Free Report) ended the recent trading session at $53, demonstrating a -1.01% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.63%. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, lost 0.63%.

Heading into today, shares of the parent company of Florida Power & Light Co. Had lost 21.76% over the past month, lagging the Utilities sector's loss of 8.68% and the S&P 500's loss of 2.35% in that time.

Analysts and investors alike will be keeping a close eye on the performance of NextEra Energy in its upcoming earnings disclosure. The company's earnings report is set to go public on October 24, 2023. 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.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.11 per share and a revenue of $27.63 billion, signifying shifts of +7.24% and +31.83%, respectively, from the last year.

Any recent changes to analyst estimates for NextEra Energy should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. 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 17.2 right now. This denotes a premium relative to the industry's average Forward P/E of 14.99.

Investors should also note that NEE has a PEG ratio of 2.17 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. The average PEG ratio for the Utility - Electric Power industry stood at 2.71 at the close of the market yesterday.

The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 30% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 Zacks.com.


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