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NextEra Energy Partners (NEP) Moves 12.6% Higher: Will This Strength Last?

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NextEra Energy Partners (NEP - Free Report) shares ended the last trading session 12.6% higher at $19.67. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 9.3% loss over the past four weeks.

NextEra Energy Partners owns a large portfolio of high-quality, long-term contracted clean energy assets and has organic growth opportunities from the repowering of its existing wind portfolio. The partnership's total backlog of wind repowering is now 1.6 gigawatts (GW) against its updated target of 1.9 GW. The firm will gain from the rising demand for clean power in its service territories.

Stable performance allows the firm to increase its unitholders value. The declaration of new quarterly distribution rate reflects an annualized increase of nearly 6% from a year earlier. Contribution from acquired assets continues to boost performance of this firm.

This limited partnership for clean-energy projects is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of +254.3%. Revenues are expected to be $347.33 million, up 49.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For NextEra Energy Partners, the consensus EPS estimate for the quarter has been revised 4.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on NEP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

NextEra Energy Partners belongs to the Zacks Alternative Energy - Other industry. Another stock from the same industry, FuelCell Energy (FCEL - Free Report) , closed the last trading session 4.4% lower at $11.35. Over the past month, FCEL has returned 13.3%.

For FuelCell Energy, the consensus EPS estimate for the upcoming report has changed +10.7% over the past month to -$1.64. This represents a change of +21.9% from what the company reported a year ago. FuelCell Energy currently has a Zacks Rank of #2 (Buy).


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