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NextEra Energy (NEE) Falls More Steeply Than Broader Market: What Investors Need to Know
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In the latest trading session, NextEra Energy (NEE - Free Report) closed at $82.65, marking a -1.41% move from the previous day. This change lagged the S&P 500's daily loss of 0.48%. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw a decrease of 0.64%.
The stock of parent company of Florida Power & Light Co. has fallen by 2.23% in the past month, lagging the Utilities sector's loss of 1.17% and the S&P 500's loss of 0.97%.
The investment community will be closely monitoring the performance of NextEra Energy in its forthcoming earnings report. The company is predicted to post an EPS of $1.17, indicating a 3.54% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $9.19 billion, showing a 15.4% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.01 per share and a revenue of $31.7 billion, indicating changes of +8.09% and +15.62%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for NextEra Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.1% higher. Currently, NextEra Energy is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, NextEra Energy is currently trading at a Forward P/E ratio of 20.9. This denotes a premium relative to the industry average Forward P/E of 17.4.
One should further note that NEE currently holds a PEG ratio of 2.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Utility - Electric Power industry currently had an average PEG ratio of 2.65 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 168, positioning it in the bottom 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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NextEra Energy (NEE) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest trading session, NextEra Energy (NEE - Free Report) closed at $82.65, marking a -1.41% move from the previous day. This change lagged the S&P 500's daily loss of 0.48%. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw a decrease of 0.64%.
The stock of parent company of Florida Power & Light Co. has fallen by 2.23% in the past month, lagging the Utilities sector's loss of 1.17% and the S&P 500's loss of 0.97%.
The investment community will be closely monitoring the performance of NextEra Energy in its forthcoming earnings report. The company is predicted to post an EPS of $1.17, indicating a 3.54% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $9.19 billion, showing a 15.4% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.01 per share and a revenue of $31.7 billion, indicating changes of +8.09% and +15.62%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for NextEra Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.1% higher. Currently, NextEra Energy is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, NextEra Energy is currently trading at a Forward P/E ratio of 20.9. This denotes a premium relative to the industry average Forward P/E of 17.4.
One should further note that NEE currently holds a PEG ratio of 2.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Utility - Electric Power industry currently had an average PEG ratio of 2.65 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 168, positioning it in the bottom 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.