In the latest trading session, NextEra Energy (NEE - Free Report) closed at $221.16, marking a -1.27% move from the previous day. This change lagged the S&P 500's 0.66% gain on the day. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 0.38%.
Coming into today, shares of the parent company of Florida Power & Light Co. Had gained 6.98% in the past month. In that same time, the Utilities sector gained 0.34%, while the S&P 500 lost 5.01%.
NEE will be looking to display strength as it nears its next earnings release. In that report, analysts expect NEE to post earnings of $2.19 per share. This would mark year-over-year growth of 0.46%. Meanwhile, our latest consensus estimate is calling for revenue of $5.27 billion, up 19.3% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.37 per share and revenue of $18.94 billion, which would represent changes of +8.7% and +13.15%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for NEE. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.2% higher within the past month. NEE is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, NEE is holding a Forward P/E ratio of 26.78. This valuation marks a premium compared to its industry's average Forward P/E of 20.99.
It is also worth noting that NEE currently has a PEG ratio of 3.34. 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 3.87 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.