NextEra Energy (NEE - Free Report) closed the most recent trading day at $229.11, moving -1.26% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.79%. Meanwhile, the Dow lost 1.86%, and the Nasdaq, a tech-heavy index, lost 1.56%.
Heading into today, shares of the parent company of Florida Power & Light Co. Had gained 2.87% over the past month, outpacing the Utilities sector's gain of 2.69% and the S&P 500's gain of 0.72% in that time.
NEE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.18, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.24 billion, up 18.54% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.38 per share and revenue of $18.99 billion, which would represent changes of +8.83% and +13.43%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for NEE. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.16% 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 27.69. This represents a premium compared to its industry's average Forward P/E of 21.66.
Meanwhile, NEE's PEG ratio is currently 3.46. 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. NEE's industry had an average PEG ratio of 3.9 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.