NextEra Energy (NEE) Gains But Lags Market: What You Should Know

NextEra Energy (NEE) closed the latest trading day at $64.18, indicating a +0.71% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 1.11%. Meanwhile, the Dow experienced a rise of 0.8%, and the technology-dominated Nasdaq saw an increase of 1.24%.

Shares of the parent company of Florida Power & Light Co. Witnessed a gain of 13.3% over the previous month, beating the performance of the Utilities sector with its gain of 3.43% and the S&P 500's gain of 0.48%.

Analysts and investors alike will be keeping a close eye on the performance of NextEra Energy in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.75, indicating a 10.71% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.38 billion, down 4.93% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.44 per share and a revenue of $28.45 billion, indicating changes of +8.52% and +1.21%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for NextEra Energy. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% higher. NextEra Energy currently has a Zacks Rank of #3 (Hold).

In the context of valuation, NextEra Energy is at present trading with a Forward P/E ratio of 18.52. For comparison, its industry has an average Forward P/E of 15.14, which means NextEra Energy is trading at a premium to the group.

Meanwhile, NEE's PEG ratio is currently 2.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.56 based on yesterday's closing prices.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 43% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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