On Jun 4, we have issued an updated research report on utility
NextEra Energy Inc.
). The steady economic improvement in the company's Florida service
territory will offer encouraging growth prospects. The combination
of a stable customer base and rising energy sales volume are
certainly signs of positive market fundamentals.
However, price volatilities might continue to act as a potential
headwind. In addition, the company's transmission and distribution
infrastructure is vulnerable to extreme weather conditions.
NextEra Energy, a Zacks Rank #3 (Hold) stock, bounced back from the
dull fourth quarter 2013 earnings to report a strong bottom-line
beat in first-quarter 2014. On a year-over-year basis, earnings and
revenues outperformed on the back of healthy electric rates and
increased sales volume.
We believe there are plenty of opportunities for NextEra Energy's
renewable generation business given the current favorable climate
for green energy in the U.S. The Obama administration recently
announced its plans to cut back carbon emissions from power plants
by 30% by 2030 from 2005 levels. This could provide a stimulus to
NextEra Energy's large-scale pro-green investments. The company
plans to invest around $2.0 billion in wind and solar assets for
the remainder of 2014.
In addition, NextEra Energy's large-scale modernization programs
are anticipated to strengthen its service reliability, leading to
customer retention. Two of the company's key upgrade programs in
Florida already commenced operations - the Cape Canaveral facility
and the Riviera Beach facility.
Even so, accidents could disrupt NextEra's regular operations and
affect the company's financial performance. Recently, a plane
crashed into NextEra Energy's South Dakota wind farm causing
damage to one of its turbines.
Key Picks from the Sector
Other better-ranked utility players include
NRG Energy Inc.
Korea Electric Power Corp.
CPFL Energia S.A.
). All the above stocks currently carry a Zacks Rank #1 (Strong
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
NEXTERA ENERGY (NEE): Free Stock Analysis
KOREA ELEC PWR (KEP): Free Stock Analysis
CPFL ENERGI-ADR (CPL): Free Stock Analysis
NRG ENERGY INC (NRG): Free Stock Analysis
To read this article on Zacks.com click here.