We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NextEra Energy Trades Above 50 and 200-Day SMA: Is More Upside Ahead?
Read MoreHide Full Article
Key Takeaways
NEE is trading above its 50 and 200-day SMAs after steady gains over the past year.
NextEra Energy plans to invest $94.2B from 2025-2030 across FPL and Energy Resources.
NEE targets 76.5-107.6 GW added renewables by 2032, with a backlog exceeding 33 GW.
NextEra Energy (NEE - Free Report) is trading above its 50 and 200-day simple moving average (“SMA”), signaling a bullish trend. NEE’s shares have gained steadily over the past 12 months after the earnings beat in the trailing four quarters.
The 50 and 200-day SMAs are key indicators for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend of the stocks.
NEE 50 and 200-Day SMA
Image Source: Zacks Investment Research
The company is well positioned to gain from planned investments in operational enhancement, strategic acquisitions, customer growth, an expanding renewable project pipeline and favorable economic trends in its service areas.
Another utility, Duke Energy Corporation (DUK - Free Report) , has a well-chalked-out capital investment plan for clean power generation and grid modernization to support load growth.
The price performance of NextEra Energy was better than Duke Energy and the Zacks Utility- Electric Power industry in the past year.
Price Performance (One Year)
Image Source: Zacks Investment Research
Should NextEra Energy be added to your portfolio purely on the back of price strength? Let’s delve deeper and find out the factors that can help investors decide whether it is a good entry point to add NEE stock to their portfolio.
Factors Contributing to NextEra Energy’s Strong Outlook
Nearly 89% of NextEra Energy’s customers are residential, with commercial and industrial users comprising the remaining 11%. The company’s significant scale, advanced technology and robust operational capabilities support consistent, above-average returns. Moreover, its wide operating presence and rapidly growing renewable energy portfolio further enhance NextEra Energy’s competitive position.
NextEra Energy continues to make significant investments to enhance and expand its operations. The company plans to invest nearly $94.2 billion between 2025 and 2030 to support infrastructure development and long-term growth. Of the total, approximately $58.63 billion will be invested in Florida Power & Light Company (“FPL”) for new generation capacity, transmission and distribution expansion, and system modernization, while around $35.56 billion will be allocated to NextEra Energy Resources to expand its operations further.
NEE’s subsidiary, NextEra Energy Resources, continues to make long-term investments in clean-energy assets. The company expects to add nearly 76.5-107.6 gigawatts (GW) of renewable energy capacity between 2026 and 2032, while its renewable project backlog currently exceeds 33 GW. Supported by operational efficiency, scale advantages in renewables and strategically located projects, NextEra Energy maintains one of the lowest cost structures in the utility industry, helping drive strong margins and competitive strength.
A strengthening Florida economy is improving growth opportunities for NextEra Energy by driving higher energy demand across the region. The company remains well-positioned to capitalize on increasing clean energy needs through continued investments in infrastructure expansion and system upgrades. At the same time, its subsidiary, FLP, maintains residential electricity rates significantly below the national average, providing a competitive edge in attracting and retaining customers.
NextEra Energy’s Earnings Estimates and Surprise History
The Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates year-over-year growth of 8.09% and 8.84%, respectively.
Image Source: Zacks Investment Research
Courtesy of the efficient execution of plans and smart capital investment, NextEra Energy’s earnings were able to surpass expectations in the last four reported quarters, resulting in an average surprise of 6.18%.
Image Source: Zacks Investment Research
Another utility, Dominion Energy (D - Free Report) , is also making smart capital investments to expand its clean energy generation assets and was able to surpass earnings estimates in the last four reported quarters. Dominion Energy’s earnings surprise in the last four reported quarters was pegged at 8.92%.
NEE Stock Returns Better Than Its Industry
Return on equity (“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.
NextEra Energy’s trailing 12-month ROE is 12.25%, ahead of the industry average of 11.39%.
Image Source: Zacks Investment Research
NextEra Energy’s Shares Trading at a Premium
The company is currently valued at a premium compared with its industry on a forward 12-month P/E basis. NextEra Energy is currently trading at 22.55X compared with the industry average of 15.51X.
Image Source: Zacks Investment Research
NextEra Energy Increases Shareholders Value
NextEra Energy has authorization in place to repurchase as many as 180 million shares over an unspecified duration. The company also aims to increase its dividend by nearly 10% annually through at least 2026, followed by approximately 6% yearly growth from the end of 2026 through 2028, pending board approval. Its current quarterly dividend is 62.32 cents per share, while the dividend yield of 2.67% remains higher than the 1.45% yield of the S&P 500 composite.
Summing Up
NextEra Energy continues to deliver consistent performance, supported by increasing demand for clean energy across its service areas. The company is methodically expanding its clean energy portfolio to meet this rising demand, while Florida’s strong economic environment is generating additional growth opportunities for the utility.
The Zacks Rank #3 (Hold), NEE stock will benefit from the decline in interest rates and strong demand from its residential customer base. The company has registered an improvement in earnings estimates and its return on equity is better than the industry.
NextEra Energy is currently trading at a premium valuation, which may prompt new investors to wait for a more favorable entry point before adding the stock to their portfolios for potential long-term gains. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
NextEra Energy Trades Above 50 and 200-Day SMA: Is More Upside Ahead?
Key Takeaways
NextEra Energy (NEE - Free Report) is trading above its 50 and 200-day simple moving average (“SMA”), signaling a bullish trend. NEE’s shares have gained steadily over the past 12 months after the earnings beat in the trailing four quarters.
The 50 and 200-day SMAs are key indicators for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend of the stocks.
NEE 50 and 200-Day SMA
Image Source: Zacks Investment Research
The company is well positioned to gain from planned investments in operational enhancement, strategic acquisitions, customer growth, an expanding renewable project pipeline and favorable economic trends in its service areas.
Another utility, Duke Energy Corporation (DUK - Free Report) , has a well-chalked-out capital investment plan for clean power generation and grid modernization to support load growth.
The price performance of NextEra Energy was better than Duke Energy and the Zacks Utility- Electric Power industry in the past year.
Price Performance (One Year)
Image Source: Zacks Investment Research
Should NextEra Energy be added to your portfolio purely on the back of price strength? Let’s delve deeper and find out the factors that can help investors decide whether it is a good entry point to add NEE stock to their portfolio.
Factors Contributing to NextEra Energy’s Strong Outlook
Nearly 89% of NextEra Energy’s customers are residential, with commercial and industrial users comprising the remaining 11%. The company’s significant scale, advanced technology and robust operational capabilities support consistent, above-average returns. Moreover, its wide operating presence and rapidly growing renewable energy portfolio further enhance NextEra Energy’s competitive position.
NextEra Energy continues to make significant investments to enhance and expand its operations. The company plans to invest nearly $94.2 billion between 2025 and 2030 to support infrastructure development and long-term growth. Of the total, approximately $58.63 billion will be invested in Florida Power & Light Company (“FPL”) for new generation capacity, transmission and distribution expansion, and system modernization, while around $35.56 billion will be allocated to NextEra Energy Resources to expand its operations further.
NEE’s subsidiary, NextEra Energy Resources, continues to make long-term investments in clean-energy assets. The company expects to add nearly 76.5-107.6 gigawatts (GW) of renewable energy capacity between 2026 and 2032, while its renewable project backlog currently exceeds 33 GW. Supported by operational efficiency, scale advantages in renewables and strategically located projects, NextEra Energy maintains one of the lowest cost structures in the utility industry, helping drive strong margins and competitive strength.
A strengthening Florida economy is improving growth opportunities for NextEra Energy by driving higher energy demand across the region. The company remains well-positioned to capitalize on increasing clean energy needs through continued investments in infrastructure expansion and system upgrades. At the same time, its subsidiary, FLP, maintains residential electricity rates significantly below the national average, providing a competitive edge in attracting and retaining customers.
NextEra Energy’s Earnings Estimates and Surprise History
The Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates year-over-year growth of 8.09% and 8.84%, respectively.
Image Source: Zacks Investment Research
Courtesy of the efficient execution of plans and smart capital investment, NextEra Energy’s earnings were able to surpass expectations in the last four reported quarters, resulting in an average surprise of 6.18%.
Image Source: Zacks Investment Research
Another utility, Dominion Energy (D - Free Report) , is also making smart capital investments to expand its clean energy generation assets and was able to surpass earnings estimates in the last four reported quarters. Dominion Energy’s earnings surprise in the last four reported quarters was pegged at 8.92%.
NEE Stock Returns Better Than Its Industry
Return on equity (“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.
NextEra Energy’s trailing 12-month ROE is 12.25%, ahead of the industry average of 11.39%.
Image Source: Zacks Investment Research
NextEra Energy’s Shares Trading at a Premium
The company is currently valued at a premium compared with its industry on a forward 12-month P/E basis. NextEra Energy is currently trading at 22.55X compared with the industry average of 15.51X.
Image Source: Zacks Investment Research
NextEra Energy Increases Shareholders Value
NextEra Energy has authorization in place to repurchase as many as 180 million shares over an unspecified duration. The company also aims to increase its dividend by nearly 10% annually through at least 2026, followed by approximately 6% yearly growth from the end of 2026 through 2028, pending board approval. Its current quarterly dividend is 62.32 cents per share, while the dividend yield of 2.67% remains higher than the 1.45% yield of the S&P 500 composite.
Summing Up
NextEra Energy continues to deliver consistent performance, supported by increasing demand for clean energy across its service areas. The company is methodically expanding its clean energy portfolio to meet this rising demand, while Florida’s strong economic environment is generating additional growth opportunities for the utility.
The Zacks Rank #3 (Hold), NEE stock will benefit from the decline in interest rates and strong demand from its residential customer base. The company has registered an improvement in earnings estimates and its return on equity is better than the industry.
NextEra Energy is currently trading at a premium valuation, which may prompt new investors to wait for a more favorable entry point before adding the stock to their portfolios for potential long-term gains. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.