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NextEra Energy (NEE) Stock Sinks As Market Gains: Here's Why
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NextEra Energy (NEE - Free Report) closed the latest trading day at $62.55, indicating a -0.52% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.11%. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.23%.
Shares of the parent company of Florida Power & Light Co. Have appreciated by 13.5% over the course of the past month, outperforming the Utilities sector's gain of 4.16% and the S&P 500's gain of 1.5%.
The investment community will be closely monitoring the performance of NextEra Energy in its forthcoming earnings report. The company is expected to report EPS of $0.75, down 10.71% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $6.38 billion, indicating a 4.93% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $3.44 per share and a revenue of $28.45 billion, demonstrating changes of +8.52% and +1.21%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for NextEra Energy. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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 past month, there's been a 0.15% rise in the Zacks Consensus EPS estimate. NextEra Energy currently has a Zacks Rank of #3 (Hold).
With respect to valuation, NextEra Energy is currently being traded at a Forward P/E ratio of 18.27. This represents a premium compared to its industry's average Forward P/E of 15.2.
Investors should also note that NEE has a PEG ratio of 2.23 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. By the end of yesterday's trading, the Utility - Electric Power industry had an average PEG ratio of 2.49.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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NextEra Energy (NEE) Stock Sinks As Market Gains: Here's Why
NextEra Energy (NEE - Free Report) closed the latest trading day at $62.55, indicating a -0.52% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.11%. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.23%.
Shares of the parent company of Florida Power & Light Co. Have appreciated by 13.5% over the course of the past month, outperforming the Utilities sector's gain of 4.16% and the S&P 500's gain of 1.5%.
The investment community will be closely monitoring the performance of NextEra Energy in its forthcoming earnings report. The company is expected to report EPS of $0.75, down 10.71% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $6.38 billion, indicating a 4.93% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $3.44 per share and a revenue of $28.45 billion, demonstrating changes of +8.52% and +1.21%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for NextEra Energy. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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 past month, there's been a 0.15% rise in the Zacks Consensus EPS estimate. NextEra Energy currently has a Zacks Rank of #3 (Hold).
With respect to valuation, NextEra Energy is currently being traded at a Forward P/E ratio of 18.27. This represents a premium compared to its industry's average Forward P/E of 15.2.
Investors should also note that NEE has a PEG ratio of 2.23 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. By the end of yesterday's trading, the Utility - Electric Power industry had an average PEG ratio of 2.49.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.