Markets

NextEra Energy (NEE) Dips More Than Broader Markets: What You Should Know

In the latest trading session, NextEra Energy (NEE) closed at $301.47, marking a -1.37% move from the previous day. This change lagged the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq lost 0.1%.

Heading into today, shares of the parent company of Florida Power & Light Co. Had gained 8.42% over the past month, outpacing the Utilities sector's gain of 7.43% and the S&P 500's gain of 5.91% in that time.

Investors will be hoping for strength from NEE as it approaches its next earnings release, which is expected to be October 21, 2020. On that day, NEE is projected to report earnings of $2.73 per share, which would represent year-over-year growth of 14.23%. Our most recent consensus estimate is calling for quarterly revenue of $5.59 billion, up 0.39% from the year-ago period.

NEE's full-year Zacks Consensus Estimates are calling for earnings of $9.16 per share and revenue of $20.08 billion. These results would represent year-over-year changes of +9.44% and +4.57%, respectively.

Any recent changes to analyst estimates for NEE should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. NEE is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that NEE has a Forward P/E ratio of 33.38 right now. This valuation marks a premium compared to its industry's average Forward P/E of 18.32.

We can also see that NEE currently has a PEG ratio of 4.2. 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. NEE's industry had an average PEG ratio of 3.78 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 28% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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