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NextEra Energy (NEE) Suffers a Larger Drop Than the General Market: Key Insights
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NextEra Energy (NEE - Free Report) ended the recent trading session at $60.35, demonstrating a -1.13% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.37%. Elsewhere, the Dow saw a downswing of 0.62%, while the tech-heavy Nasdaq depreciated by 0.19%.
The parent company of Florida Power & Light Co.'s stock has climbed by 0.07% in the past month, exceeding the Utilities sector's loss of 3.8% and lagging the S&P 500's gain of 1.56%.
The investment community will be paying close attention to the earnings performance of NextEra Energy in its upcoming release. The company is slated to reveal its earnings on January 25, 2024. The company is predicted to post an EPS of $0.49, indicating a 3.92% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.15 billion, indicating a 0.2% decrease compared to the same quarter of the previous year.
It is also important to note the recent changes to analyst estimates for NextEra Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% decrease. NextEra Energy is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, NextEra Energy is currently exchanging hands at a Forward P/E ratio of 18.01. This indicates a premium in contrast to its industry's Forward P/E of 14.97.
It's also important to note that NEE currently trades at a PEG ratio of 2.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Utility - Electric Power industry held an average PEG ratio of 2.61.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 42% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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NextEra Energy (NEE) Suffers a Larger Drop Than the General Market: Key Insights
NextEra Energy (NEE - Free Report) ended the recent trading session at $60.35, demonstrating a -1.13% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.37%. Elsewhere, the Dow saw a downswing of 0.62%, while the tech-heavy Nasdaq depreciated by 0.19%.
The parent company of Florida Power & Light Co.'s stock has climbed by 0.07% in the past month, exceeding the Utilities sector's loss of 3.8% and lagging the S&P 500's gain of 1.56%.
The investment community will be paying close attention to the earnings performance of NextEra Energy in its upcoming release. The company is slated to reveal its earnings on January 25, 2024. The company is predicted to post an EPS of $0.49, indicating a 3.92% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.15 billion, indicating a 0.2% decrease compared to the same quarter of the previous year.
It is also important to note the recent changes to analyst estimates for NextEra Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% decrease. NextEra Energy is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, NextEra Energy is currently exchanging hands at a Forward P/E ratio of 18.01. This indicates a premium in contrast to its industry's Forward P/E of 14.97.
It's also important to note that NEE currently trades at a PEG ratio of 2.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Utility - Electric Power industry held an average PEG ratio of 2.61.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 42% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.