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NextEra Energy vs. Dominion Energy: Which Offers Better Upside?
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Key Takeaways
NextEra Energy is investing in solar, wind, battery storage and transmission infrastructure projects.
NEE shares gained 30.1% in a year; its 2026 EPS estimate increased 0.25% in 60 days.
Dominion Energy is expanding offshore wind, solar generation and grid modernization initiatives.
NextEra Energy, Inc. (NEE - Free Report) and Dominion Energy, Inc. (D - Free Report) are benefiting from favorable trends in the Zacks Utility-Electric Power industry, which is witnessing rising electricity demand driven by AI-based data centers, industrial expansion, electric vehicles and increasing residential power usage. Amid the ongoing transition toward cleaner energy generation, both companies are expanding investments in renewables, energy storage and grid modernization projects while focusing on reliable and sustainable power generation.
The utility sector continues to strengthen its long-term outlook through investments in solar, wind, battery storage and transmission infrastructure. Utilities are modernizing power grids, reducing carbon intensity and expanding low-emission generation sources to meet rising electricity demand without compromising system reliability. At the same time, supportive regulatory frameworks and ongoing infrastructure investments are creating stable long-term growth opportunities for regulated utilities operating in the clean energy transition.
Let’s compare the stocks’ fundamentals to determine which one is the better investment option at present.
The Case for NEE Stock
NextEra Energy is one of the largest electric power and energy infrastructure companies in North America, with a diversified portfolio that includes natural gas, solar, wind, nuclear and battery storage facilities. The company continues to invest heavily in renewable generation, battery storage and transmission infrastructure to support rising electricity demand and strengthen grid reliability.
NEE’s long-term strategy focuses on expanding clean energy generation and energy storage capacity while modernizing utility infrastructure across its regulated and contracted operations. Through ongoing investments in solar, battery storage and transmission assets, NextEra Energy remains well-positioned to benefit from rising power demand, electrification trends and long-term decarbonization initiatives.
The Case for D Stock
Dominion Energy is a regulated utility company focused on delivering reliable electricity while investing in cleaner energy infrastructure and system modernization initiatives. The company continues to expand renewable generation, transmission infrastructure and grid reliability projects to support growing electricity demand and long-term operational efficiency.
D’s strategy centers on advancing renewable energy projects, transmission expansion and grid transformation investments aimed at supporting long-term load growth and cleaner power generation. Its investments in offshore wind, solar generation and energy infrastructure position the company to benefit from increasing electrification trends and the transition toward lower-carbon energy sources.
How Does the Zacks Consensus Estimate Compare for NEE & D?
The Zacks Consensus Estimate for NEE’s 2026 earnings per share (EPS) indicates an increase of 0.25% in the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for D’s 2026 EPS calls for a decline of 0.28% in the past 60 days.
Image Source: Zacks Investment Research
ROE of NEE & D
Return on Equity (“ROE”) measures how efficiently a company is utilizing its shareholders’ funds to generate profits. Currently, NextEra Energy’s ROE is 12.25% compared with Dominion Energy’s 9.63%.
NEE & D’s Long-Term Strategic Investment Plans
Capital expenditure plays a vital role in the energy sector as it supports infrastructure expansion, enhances system reliability and fuels long-term growth. Utilities need to continuously invest in power generation, transmission and distribution systems to address growing electricity demand, incorporate renewable energy sources and meet changing regulatory requirements.
NextEra Energy plans to invest nearly $94.2 billion between 2025 and 2030 to strengthen infrastructure and support future growth initiatives. Dominion Energy intends to invest nearly $65 billion during 2026-2030 to further strengthen its operations.
NEE vs. D: Stock Price Performance
Over the past year, shares of NextEra Energy and Dominion Energy have rallied 30.1% and 19.3%, respectively, compared with the industry’s rise of 21.6%.
Image Source: Zacks Investment Research
Valuation for NEE & D
NEE shares trade at a forward 12-month Price/Earnings (P/E- F12M) multiple of 21.34 compared with D’s P/E- F12M of 18.39.
Image Source: Zacks Investment Research
Summing Up
Both companies are capitalizing on rising electricity demand and the ongoing shift toward lower-carbon energy sources. NextEra Energy is strengthening its position through investments in renewable generation, battery storage and energy infrastructure, while Dominion Energy is advancing transmission expansion, offshore wind and system reliability projects to support long-term energy needs.
Our choice at the moment is NextEra Energy, given its stronger price performance, higher ROE, improving earnings estimate trends and significantly larger long-term capital expenditure plan compared to Dominion Energy.
The planned merger between NEE and D is expected to strengthen operational scale, enhance infrastructure capabilities and support long-term growth through improved efficiency and broader clean energy investment opportunities.
View the Zacks #1 Rank List
Image: Bigstock
NextEra Energy vs. Dominion Energy: Which Offers Better Upside?
Key Takeaways
NextEra Energy, Inc. (NEE - Free Report) and Dominion Energy, Inc. (D - Free Report) are benefiting from favorable trends in the Zacks Utility-Electric Power industry, which is witnessing rising electricity demand driven by AI-based data centers, industrial expansion, electric vehicles and increasing residential power usage. Amid the ongoing transition toward cleaner energy generation, both companies are expanding investments in renewables, energy storage and grid modernization projects while focusing on reliable and sustainable power generation.
The utility sector continues to strengthen its long-term outlook through investments in solar, wind, battery storage and transmission infrastructure. Utilities are modernizing power grids, reducing carbon intensity and expanding low-emission generation sources to meet rising electricity demand without compromising system reliability. At the same time, supportive regulatory frameworks and ongoing infrastructure investments are creating stable long-term growth opportunities for regulated utilities operating in the clean energy transition.
Let’s compare the stocks’ fundamentals to determine which one is the better investment option at present.
The Case for NEE Stock
NextEra Energy is one of the largest electric power and energy infrastructure companies in North America, with a diversified portfolio that includes natural gas, solar, wind, nuclear and battery storage facilities. The company continues to invest heavily in renewable generation, battery storage and transmission infrastructure to support rising electricity demand and strengthen grid reliability.
NEE’s long-term strategy focuses on expanding clean energy generation and energy storage capacity while modernizing utility infrastructure across its regulated and contracted operations. Through ongoing investments in solar, battery storage and transmission assets, NextEra Energy remains well-positioned to benefit from rising power demand, electrification trends and long-term decarbonization initiatives.
The Case for D Stock
Dominion Energy is a regulated utility company focused on delivering reliable electricity while investing in cleaner energy infrastructure and system modernization initiatives. The company continues to expand renewable generation, transmission infrastructure and grid reliability projects to support growing electricity demand and long-term operational efficiency.
D’s strategy centers on advancing renewable energy projects, transmission expansion and grid transformation investments aimed at supporting long-term load growth and cleaner power generation. Its investments in offshore wind, solar generation and energy infrastructure position the company to benefit from increasing electrification trends and the transition toward lower-carbon energy sources.
How Does the Zacks Consensus Estimate Compare for NEE & D?
The Zacks Consensus Estimate for NEE’s 2026 earnings per share (EPS) indicates an increase of 0.25% in the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for D’s 2026 EPS calls for a decline of 0.28% in the past 60 days.
Image Source: Zacks Investment Research
ROE of NEE & D
Return on Equity (“ROE”) measures how efficiently a company is utilizing its shareholders’ funds to generate profits. Currently, NextEra Energy’s ROE is 12.25% compared with Dominion Energy’s 9.63%.
NEE & D’s Long-Term Strategic Investment Plans
Capital expenditure plays a vital role in the energy sector as it supports infrastructure expansion, enhances system reliability and fuels long-term growth. Utilities need to continuously invest in power generation, transmission and distribution systems to address growing electricity demand, incorporate renewable energy sources and meet changing regulatory requirements.
NextEra Energy plans to invest nearly $94.2 billion between 2025 and 2030 to strengthen infrastructure and support future growth initiatives. Dominion Energy intends to invest nearly $65 billion during 2026-2030 to further strengthen its operations.
NEE vs. D: Stock Price Performance
Over the past year, shares of NextEra Energy and Dominion Energy have rallied 30.1% and 19.3%, respectively, compared with the industry’s rise of 21.6%.
Image Source: Zacks Investment Research
Valuation for NEE & D
NEE shares trade at a forward 12-month Price/Earnings (P/E- F12M) multiple of 21.34 compared with D’s P/E- F12M of 18.39.
Image Source: Zacks Investment Research
Summing Up
Both companies are capitalizing on rising electricity demand and the ongoing shift toward lower-carbon energy sources. NextEra Energy is strengthening its position through investments in renewable generation, battery storage and energy infrastructure, while Dominion Energy is advancing transmission expansion, offshore wind and system reliability projects to support long-term energy needs.
Our choice at the moment is NextEra Energy, given its stronger price performance, higher ROE, improving earnings estimate trends and significantly larger long-term capital expenditure plan compared to Dominion Energy.
The planned merger between NEE and D is expected to strengthen operational scale, enhance infrastructure capabilities and support long-term growth through improved efficiency and broader clean energy investment opportunities.
NextEra Energy and Dominion Energy both carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.