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Zacks Investment Ideas feature highlights: NextEra Energy
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For Immediate Release
Chicago, IL – March 25, 2026 – Today, Zacks Investment Ideas feature highlights NextEra Energy (NEE - Free Report) .
NextEra's Federal Energy Deal Could Power Stock to Higher Highs
NextEra Energy is making headlines after securing a federal deal to enhance natural-gas generation in the United States.
Trading near a 52-week high of over $90 a share, NextEra’s stock was already performing well before the energy deal as investors have responded positively to the company’s strong business fundamentals, which have been spurred by rising electricity demand and a dominant position in the U.S. renewable energy market.
With expectations that NextEra will benefit from large-scale infrastructure expansion starting to come to fruition, it wouldn’t be a surprise if NEE shares continue to reach new highs.
NextEra’s Natural Gas Deal
On Monday, the Trump administration approved NextEra’s plan to develop up to 10 gigawatts of natural-gas power generation in Texas and Pennsylvania as part of a broader U.S.–Japan trade agreement.
The joint ownership between the United States and Japan is tied to Japan’s $550 billion investmentcommitment in the U.S. market.
NextEra will build and operate the natural gas facilities, which are intended to support rapidly growing electricity demand from data centers and AI infrastructure.
As one of the largest natural-gas power buildouts in recent U.S. history, the deal signals a strategic pivot for NextEra after historically having a focus on renewable energy.
With an estimated cost of $33 billion, the scale of the project positions NextEra as a cornerstone of the current U.S.–Japan trade partnership. It’s noteworthy that Texas and Pennsylvania were selected for their strategic value in supporting data-center clusters and national energy reliability.
Tracking NextEra’s Outlook
Based on Zacks estimates, NextEra’s annual sales are expected to increase 15% in fiscal 2026 to $31.54 billion compared to $27.41 billion in FY25. More intriguing, FY27 sales are projected to rise another 9% to $34.58 billion.
On the bottom line, annual earnings are currently slated to be up 8% this year to $4.00 per share, versus EPS of $3.71 in FY25. Another 9% EPS growth is expected in FY27, with projections at $4.36.
NEE Valuation Comparison - P/E
NextEra’s stock is at a 22X forward earnings multiple, which is a slight premium to its Zacks Utility-Electric Power Industry average of 17X forward earnings. However, NEE is virtually on par with the benchmark S&P 500’s forward P/E average and is notably in line with its median forward P/E average over the last decade.
NextEra: a Dividend Aristocrat
Considering NextEra’s reasonable P/E valuation and strengthening outlook, what has further compelled investors is that NEE has a 2.76% annual dividend yield. Furthermore, NEE has a reliable payout with NextEra being recognized as a Dividend Aristocrat, raising its dividend for more than 25 consecutive years (29).
Conclusion & Strategic Thoughts
NextEra Energy has a reputation as a defensive, high-quality utility stock that investors are certainly inclined to consider at the moment. To that point, recent market volatility has been tied to global energy disruptions amid military conflicts in the Middle East.
Having a long-term growth narrative as it relates to renewable energy and benefiting from surging electricity demand from AI data centers, the rally in NextEra's stock looks likely to continue. NEE currently lands a Zacks Rank #3 (Hold), but a buy rating could be on the way as sales projections and EPS revisions are likely to trend higher for FY26 and FY27.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: NextEra Energy
For Immediate Release
Chicago, IL – March 25, 2026 – Today, Zacks Investment Ideas feature highlights NextEra Energy (NEE - Free Report) .
NextEra's Federal Energy Deal Could Power Stock to Higher Highs
NextEra Energy is making headlines after securing a federal deal to enhance natural-gas generation in the United States.
Trading near a 52-week high of over $90 a share, NextEra’s stock was already performing well before the energy deal as investors have responded positively to the company’s strong business fundamentals, which have been spurred by rising electricity demand and a dominant position in the U.S. renewable energy market.
With expectations that NextEra will benefit from large-scale infrastructure expansion starting to come to fruition, it wouldn’t be a surprise if NEE shares continue to reach new highs.
NextEra’s Natural Gas Deal
On Monday, the Trump administration approved NextEra’s plan to develop up to 10 gigawatts of natural-gas power generation in Texas and Pennsylvania as part of a broader U.S.–Japan trade agreement.
The joint ownership between the United States and Japan is tied to Japan’s $550 billion investment commitment in the U.S. market.
NextEra will build and operate the natural gas facilities, which are intended to support rapidly growing electricity demand from data centers and AI infrastructure.
As one of the largest natural-gas power buildouts in recent U.S. history, the deal signals a strategic pivot for NextEra after historically having a focus on renewable energy.
With an estimated cost of $33 billion, the scale of the project positions NextEra as a cornerstone of the current U.S.–Japan trade partnership. It’s noteworthy that Texas and Pennsylvania were selected for their strategic value in supporting data-center clusters and national energy reliability.
Tracking NextEra’s Outlook
Based on Zacks estimates, NextEra’s annual sales are expected to increase 15% in fiscal 2026 to $31.54 billion compared to $27.41 billion in FY25. More intriguing, FY27 sales are projected to rise another 9% to $34.58 billion.
On the bottom line, annual earnings are currently slated to be up 8% this year to $4.00 per share, versus EPS of $3.71 in FY25. Another 9% EPS growth is expected in FY27, with projections at $4.36.
NEE Valuation Comparison - P/E
NextEra’s stock is at a 22X forward earnings multiple, which is a slight premium to its Zacks Utility-Electric Power Industry average of 17X forward earnings. However, NEE is virtually on par with the benchmark S&P 500’s forward P/E average and is notably in line with its median forward P/E average over the last decade.
NextEra: a Dividend Aristocrat
Considering NextEra’s reasonable P/E valuation and strengthening outlook, what has further compelled investors is that NEE has a 2.76% annual dividend yield. Furthermore, NEE has a reliable payout with NextEra being recognized as a Dividend Aristocrat, raising its dividend for more than 25 consecutive years (29).
Conclusion & Strategic Thoughts
NextEra Energy has a reputation as a defensive, high-quality utility stock that investors are certainly inclined to consider at the moment. To that point, recent market volatility has been tied to global energy disruptions amid military conflicts in the Middle East.
Having a long-term growth narrative as it relates to renewable energy and benefiting from surging electricity demand from AI data centers, the rally in NextEra's stock looks likely to continue. NEE currently lands a Zacks Rank #3 (Hold), but a buy rating could be on the way as sales projections and EPS revisions are likely to trend higher for FY26 and FY27.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.