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NextEra Energy (NEE) Rises As Market Takes a Dip: Key Facts

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NextEra Energy (NEE - Free Report) closed the latest trading day at $76.20, indicating a +0.61% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 0.19%. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Heading into today, shares of the parent company of Florida Power & Light Co. Had gained 1.64% over the past month, lagging the Utilities sector's gain of 2.52% and the S&P 500's gain of 6.66% in that time.

Market participants will be closely following the financial results of NextEra Energy in its upcoming release. The company is forecasted to report an EPS of $0.52, showcasing no movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.67 billion, indicating a 3.02% decrease compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.41 per share and a revenue of $26.86 billion, signifying shifts of +7.57% and -4.46%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for NextEra Energy. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. NextEra Energy presently features a Zacks Rank of #3 (Hold).

In terms of valuation, NextEra Energy is presently being traded at a Forward P/E ratio of 22.21. For comparison, its industry has an average Forward P/E of 17.15, which means NextEra Energy is trading at a premium to the group.

It's also important to note that NEE currently trades at a PEG ratio of 2.74. 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. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.69 based on yesterday's closing prices.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 127, which puts it in the top 50% of all 250+ industries.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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