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

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In the latest market close, NextEra Energy (NEE - Free Report) reached $70.15, with a -0.69% movement compared to the previous day. This change lagged the S&P 500's 0.41% gain on the day. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq increased by 0.67%.

Shares of the parent company of Florida Power & Light Co. Have appreciated by 5.29% over the course of the past month, outperforming the Utilities sector's gain of 1.43% and lagging the S&P 500's gain of 6.13%.

The upcoming earnings release of NextEra Energy will be of great interest to investors. The company is expected to report EPS of $0.99, up 3.13% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $7.25 billion, indicating a 19.44% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.68 per share and a revenue of $29.04 billion, representing changes of +7.29% and +17.32%, respectively, from the prior 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, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NextEra Energy presently features a Zacks Rank of #3 (Hold).

With respect to valuation, NextEra Energy is currently being traded at a Forward P/E ratio of 19.22. This expresses a premium compared to the average Forward P/E of 18.39 of its industry.

Also, we should mention that NEE has a PEG ratio of 2.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Utility - Electric Power industry stood at 2.67 at the close of the market yesterday.

The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 29% echelons of all 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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