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NextEra Energy (NEE) Laps the Stock Market: Here's Why
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NextEra Energy (NEE - Free Report) ended the recent trading session at $86.75, demonstrating a +1.19% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.09%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 1.91%.
Coming into today, shares of the parent company of Florida Power & Light Co. had lost 2.88% in the past month. In that same time, the Utilities sector gained 0.52%, while the S&P 500 gained 0.29%.
Market participants will be closely following the financial results of NextEra Energy in its upcoming release. The company is predicted to post an EPS of $1.13, indicating a 7.62% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.97 billion, indicating a 18.96% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $4.01 per share and a revenue of $31.89 billion, demonstrating changes of +8.09% and +16.34%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for NextEra Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Currently, NextEra Energy is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, NextEra Energy is holding a Forward P/E ratio of 21.37. This signifies a premium in comparison to the average Forward P/E of 17.86 for its industry.
It's also important to note that NEE currently trades at a PEG ratio of 2.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Utility - Electric Power was holding an average PEG ratio of 2.65 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 37% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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NextEra Energy (NEE) Laps the Stock Market: Here's Why
NextEra Energy (NEE - Free Report) ended the recent trading session at $86.75, demonstrating a +1.19% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.09%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 1.91%.
Coming into today, shares of the parent company of Florida Power & Light Co. had lost 2.88% in the past month. In that same time, the Utilities sector gained 0.52%, while the S&P 500 gained 0.29%.
Market participants will be closely following the financial results of NextEra Energy in its upcoming release. The company is predicted to post an EPS of $1.13, indicating a 7.62% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.97 billion, indicating a 18.96% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $4.01 per share and a revenue of $31.89 billion, demonstrating changes of +8.09% and +16.34%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for NextEra Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Currently, NextEra Energy is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, NextEra Energy is holding a Forward P/E ratio of 21.37. This signifies a premium in comparison to the average Forward P/E of 17.86 for its industry.
It's also important to note that NEE currently trades at a PEG ratio of 2.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Utility - Electric Power was holding an average PEG ratio of 2.65 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 37% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.