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Can NEE Stock's Diverse Generation Mix Boost Long-Term Growth Outlook?
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Key Takeaways
NextEra Energy operates one of the largest renewable energy businesses with wind and solar leadership.
NEE combines natural gas, nuclear and renewables to ensure reliability, stability and decarbonization.
NEE expects 6-8% annual EPS growth through 2027, supported by strong ROE and recent stock outperformance.
NextEra Energy (NEE - Free Report) benefits from a well-balanced generation portfolio that positions it for sustainable long-term growth. The company operates one of the largest renewable energy businesses in the world, with a leading presence in wind and solar power. NextEra is consistently expanding its renewable footprint and securing long-term contracts that provide stable and predictable cash flows.
In 2024, NextEra’s unit Florida Power and Light used natural gas, solar, nuclear and other sources, which contributed 69%, 20%, 10% and 1%, respectively, to its generation. Another unit, Energy Resources, used wind, nuclear, solar and other sources, which contributed 64%, 17% 15% and 4%, respectively, to its generation.
NextEra’s natural gas generation assets play a vital role in ensuring reliability and grid stability. While wind and solar are variable sources, natural gas plants provide dependable baseload and peaking capacity that balances fluctuations in renewable output. This integration of renewables with conventional resources allows NextEra to deliver consistent power, meet regulatory requirements and respond to customer demand effectively.
Nuclear generation further strengthens NextEra’s portfolio, providing carbon-free baseload power that supports its long-term decarbonization strategy. Nuclear plants ensure a steady supply of electricity that complements intermittent renewable sources and reduces reliance on fossil fuels.
NextEra’s multiple fuel-based generation assets reduce risk, support customer needs and align with national energy transition goals. This integrated strategy not only secures consistent earnings growth but also makes NextEra a key contributor in shaping the future of the U.S. power sector.
Utilities Gain From Fuel Diversity in Power Generation
Utilities with multiple fuel-based generation assets gain resilience against fuel price volatility, enhance grid reliability and optimize operations. This diversified mix ensures stable earnings, regulatory compliance and long-term competitiveness while supporting the transition toward cleaner, low-carbon energy solutions.
Companies like Duke Energy (DUK - Free Report) and Dominion Energy (D - Free Report) benefit significantly from operating with multiple fuel-based generation assets. Duke leverages coal, natural gas, nuclear and renewables to balance affordability with sustainability, while Dominion combines natural gas, solar and nuclear to enhance reliability and growth. This fuel diversity helps both utilities mitigate risks, maintain stable earnings and support long-term decarbonization goals.
NEE’s Price Performance
NextEra’s shares have gained 11.8% in the past three months compared with the Zacks Utility Electric-Power industry’s rise of 1.6%.
Image Source: Zacks Investment Research
NEE Stock Returns Better Than Its Industry
NextEra’s trailing 12-month return on equity (“ROE”) is 12.31%, ahead of the industry average of 10.14%. ROE is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.
Image Source: Zacks Investment Research
NextEra’s Earnings Estimates Up Y/Y
NextEra expects its 2025 earnings per share to be in the range of $3.45-$3.70 compared with $3.43 a year ago. The Zacks Consensus Estimate for NEE’s 2025 and 2026 earnings per share indicates year-over-year growth of 7.29% and 7.88%, respectively. NextEra expects to increase its earnings per share in the range of 6-8% annually through 2027 from the 2024 level.
Image: Bigstock
Can NEE Stock's Diverse Generation Mix Boost Long-Term Growth Outlook?
Key Takeaways
NextEra Energy (NEE - Free Report) benefits from a well-balanced generation portfolio that positions it for sustainable long-term growth. The company operates one of the largest renewable energy businesses in the world, with a leading presence in wind and solar power. NextEra is consistently expanding its renewable footprint and securing long-term contracts that provide stable and predictable cash flows.
In 2024, NextEra’s unit Florida Power and Light used natural gas, solar, nuclear and other sources, which contributed 69%, 20%, 10% and 1%, respectively, to its generation. Another unit, Energy Resources, used wind, nuclear, solar and other sources, which contributed 64%, 17% 15% and 4%, respectively, to its generation.
NextEra’s natural gas generation assets play a vital role in ensuring reliability and grid stability. While wind and solar are variable sources, natural gas plants provide dependable baseload and peaking capacity that balances fluctuations in renewable output. This integration of renewables with conventional resources allows NextEra to deliver consistent power, meet regulatory requirements and respond to customer demand effectively.
Nuclear generation further strengthens NextEra’s portfolio, providing carbon-free baseload power that supports its long-term decarbonization strategy. Nuclear plants ensure a steady supply of electricity that complements intermittent renewable sources and reduces reliance on fossil fuels.
NextEra’s multiple fuel-based generation assets reduce risk, support customer needs and align with national energy transition goals. This integrated strategy not only secures consistent earnings growth but also makes NextEra a key contributor in shaping the future of the U.S. power sector.
Utilities Gain From Fuel Diversity in Power Generation
Utilities with multiple fuel-based generation assets gain resilience against fuel price volatility, enhance grid reliability and optimize operations. This diversified mix ensures stable earnings, regulatory compliance and long-term competitiveness while supporting the transition toward cleaner, low-carbon energy solutions.
Companies like Duke Energy (DUK - Free Report) and Dominion Energy (D - Free Report) benefit significantly from operating with multiple fuel-based generation assets. Duke leverages coal, natural gas, nuclear and renewables to balance affordability with sustainability, while Dominion combines natural gas, solar and nuclear to enhance reliability and growth. This fuel diversity helps both utilities mitigate risks, maintain stable earnings and support long-term decarbonization goals.
NEE’s Price Performance
NextEra’s shares have gained 11.8% in the past three months compared with the Zacks Utility Electric-Power industry’s rise of 1.6%.
Image Source: Zacks Investment Research
NEE Stock Returns Better Than Its Industry
NextEra’s trailing 12-month return on equity (“ROE”) is 12.31%, ahead of the industry average of 10.14%. ROE is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.
Image Source: Zacks Investment Research
NextEra’s Earnings Estimates Up Y/Y
NextEra expects its 2025 earnings per share to be in the range of $3.45-$3.70 compared with $3.43 a year ago. The Zacks Consensus Estimate for NEE’s 2025 and 2026 earnings per share indicates year-over-year growth of 7.29% and 7.88%, respectively. NextEra expects to increase its earnings per share in the range of 6-8% annually through 2027 from the 2024 level.
Image Source: Zacks Investment Research
NEE’s Zacks Rank
NextEra currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.