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NextEra Energy (NEE) Stock Dips While Market Gains: Key Facts

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In the latest trading session, NextEra Energy (NEE - Free Report) closed at $63.94, marking a -0.11% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.74%. Elsewhere, the Dow saw a downswing of 0.01%, while the tech-heavy Nasdaq appreciated by 1.68%.

Shares of the parent company of Florida Power & Light Co. Witnessed a gain of 7.51% over the previous month, beating the performance of the Utilities sector with its loss of 6.89% and the S&P 500's gain of 0.8%.

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 April 23, 2024. The company is expected to report EPS of $0.75, down 10.71% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $6.38 billion, showing a 4.93% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.44 per share and revenue of $28.45 billion, indicating changes of +8.52% and +1.21%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for NextEra Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. NextEra Energy presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, NextEra Energy is currently exchanging hands at a Forward P/E ratio of 18.6. This valuation marks a premium compared to its industry's average Forward P/E of 14.95.

It is also worth noting that NEE currently has a PEG ratio of 2.27. 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 average PEG ratio for the Utility - Electric Power industry stood at 2.61 at the close of the market yesterday.

The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 169, this industry ranks in the bottom 33% of all industries, numbering over 250.

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.

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