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NextEra Energy (NEE) Outperforms Broader Market: What You Need to Know

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The latest trading session saw NextEra Energy (NEE - Free Report) ending at $62.78, denoting a +0.43% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.27% for the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.19%.

Shares of the parent company of Florida Power & Light Co. Have appreciated by 9.67% over the course of the past month, underperforming the Utilities sector's gain of 10.86% and outperforming the S&P 500's gain of 6.94%.

The upcoming earnings release of NextEra Energy will be of great interest to investors. The company is expected to report EPS of $0.51, unchanged from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $6.17 billion, showing a 0.14% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $3.12 per share and a revenue of $27.52 billion, demonstrating changes of +7.59% and +31.32%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for NextEra Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, NextEra Energy is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, NextEra Energy is presently being traded at a Forward P/E ratio of 20.03. For comparison, its industry has an average Forward P/E of 16.81, which means NextEra Energy is trading at a premium to the group.

Investors should also note that NEE has a PEG ratio of 2.45 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Utility - Electric Power industry currently had an average PEG ratio of 2.93 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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