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Will NextEra Gain by Generating Power From Multiple Clean Sources?
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Key Takeaways
NextEra is expanding in wind, solar and battery storage to meet rising low-carbon power demand.
NextEra projects 76.6-107.6 GW of renewable capacity additions from 2026 to 2032.
NEE's ROE tops its industry average, while earnings estimates for 2026 and 2027 are rising.
NextEra Energy (NEE - Free Report) holds a strong position in the renewable energy sector, supported by its early and substantial investments in wind, solar and battery storage technologies. As the companies in the Zacks Utility - Electric Power industry shift toward clean power, more utilities are generating electricity from renewable sources. NextEra Energy’s extensive renewable energy infrastructure provides a strong competitive advantage, enabling it to capitalize on the growing demand for low-carbon power solutions.
Growing environmental awareness and increasingly stringent emissions regulations are driving the transition toward clean energy, positioning NextEra Energy to capitalize on rising demand. The company continues to expand its renewable energy footprint. NextEra Energy projects the addition of nearly 76.6-107.6 gigawatts (“GW”) of renewable generation capacity between 2026 and 2032 and currently has a renewable development backlog exceeding 33 GW. supporting long-term growth and revenue visibility.
Renewable energy also offers economic advantages, as wind and solar resources are not subject to fuel price fluctuations. Technological advancements over the past decade have significantly reduced generation costs, enhancing the competitiveness of renewables. Long-term power purchase agreements provide stable and predictable cash flows, while investments in battery storage improve grid reliability and open additional revenue streams.
NextEra Energy’s leadership in renewable energy further strengthens its competitive position. Favorable government policies, including tax incentives and decarbonization initiatives, continue to support industry growth. Through sustained investment in clean energy infrastructure, the company remains well-positioned to benefit from the global energy transition and deliver long-term value to its shareholders.
Other Utilities Expanding Renewable Energy Portfolios
Utilities are expanding their use of clean energy sources, including wind, solar, hydro and nuclear power, while decreasing dependence on fossil fuels. This shift is reducing carbon emissions, supporting environmental goals and helping utilities comply with increasingly stringent regulations.
Duke Energy (DUK - Free Report) and The Southern Company (SO - Free Report) present compelling investment opportunities, supported by their regulated utility businesses and commitment to the clean energy transition. The companies continue to invest in renewable energy projects, nuclear generation, grid upgrades and other low-carbon initiatives aimed at lowering carbon emissions and improving sustainability. These strategic investments are expected to strengthen system reliability and support long-term earnings growth while meeting the rising demand for cleaner sources of electricity.
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 11.09%.
Image Source: Zacks Investment Research
NEE’s Price Performance
Shares of NextEra Energy have gained 7.8% in the past six months compared with the industry’s rally of 6.6%.
Image Source: Zacks Investment Research
NextEra Energy’s Earnings Estimates Moving North
The Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates a year-over-year increase of 8.09% and 8.84%, respectively.
View the Zacks #1 Rank List
Image: Bigstock
Will NextEra Gain by Generating Power From Multiple Clean Sources?
Key Takeaways
NextEra Energy (NEE - Free Report) holds a strong position in the renewable energy sector, supported by its early and substantial investments in wind, solar and battery storage technologies. As the companies in the Zacks Utility - Electric Power industry shift toward clean power, more utilities are generating electricity from renewable sources. NextEra Energy’s extensive renewable energy infrastructure provides a strong competitive advantage, enabling it to capitalize on the growing demand for low-carbon power solutions.
Growing environmental awareness and increasingly stringent emissions regulations are driving the transition toward clean energy, positioning NextEra Energy to capitalize on rising demand. The company continues to expand its renewable energy footprint. NextEra Energy projects the addition of nearly 76.6-107.6 gigawatts (“GW”) of renewable generation capacity between 2026 and 2032 and currently has a renewable development backlog exceeding 33 GW. supporting long-term growth and revenue visibility.
Renewable energy also offers economic advantages, as wind and solar resources are not subject to fuel price fluctuations. Technological advancements over the past decade have significantly reduced generation costs, enhancing the competitiveness of renewables. Long-term power purchase agreements provide stable and predictable cash flows, while investments in battery storage improve grid reliability and open additional revenue streams.
NextEra Energy’s leadership in renewable energy further strengthens its competitive position. Favorable government policies, including tax incentives and decarbonization initiatives, continue to support industry growth. Through sustained investment in clean energy infrastructure, the company remains well-positioned to benefit from the global energy transition and deliver long-term value to its shareholders.
Other Utilities Expanding Renewable Energy Portfolios
Utilities are expanding their use of clean energy sources, including wind, solar, hydro and nuclear power, while decreasing dependence on fossil fuels. This shift is reducing carbon emissions, supporting environmental goals and helping utilities comply with increasingly stringent regulations.
Duke Energy (DUK - Free Report) and The Southern Company (SO - Free Report) present compelling investment opportunities, supported by their regulated utility businesses and commitment to the clean energy transition. The companies continue to invest in renewable energy projects, nuclear generation, grid upgrades and other low-carbon initiatives aimed at lowering carbon emissions and improving sustainability. These strategic investments are expected to strengthen system reliability and support long-term earnings growth while meeting the rising demand for cleaner sources of electricity.
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 11.09%.
Image Source: Zacks Investment Research
NEE’s Price Performance
Shares of NextEra Energy have gained 7.8% in the past six months compared with the industry’s rally of 6.6%.
Image Source: Zacks Investment Research
NextEra Energy’s Earnings Estimates Moving North
The Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates a year-over-year increase of 8.09% and 8.84%, respectively.
Image Source: Zacks Investment Research
NEE's Zacks Rank
NextEra currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.