NextEra Energy (NEE) closed the most recent trading day at $175.49, moving +0.46% from the previous trading session. This change lagged the S&P 500's 0.76% gain on the day. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 0.71%.
Coming into today, shares of the parent company of Florida Power & Light Co. Had gained 0.09% in the past month. In that same time, the Utilities sector lost 3.05%, while the S&P 500 gained 0.75%.
NEE will be looking to display strength as it nears its nex t earnings release, which is expected to be January 25, 2019. On that day, NEE is projected to report earnings of $1.52 per share, which would represent year-over-year growth of 21.6%. Meanwhile, our latest consensus estimate is calling for revenue of $4.43 billion, up 10.49% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for NEE. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. NEE currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that NEE has a Forward P/E ratio of 20.88 right now. Its industry sports an average Forward P/E of 17.78, so we one might conclude that NEE is trading at a premium comparatively.
Investors should also note that NEE has a PEG ratio of 2.41 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NEE's industry had an average PEG ratio of 3.2 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.