NextEra Energy (NEE) Gains But Lags Market: What You Should Know
In the latest trading session, NextEra Energy (NEE) closed at $204.77, marking a +0.11% move from the previous day. This move lagged the S&P 500's daily gain of 0.41%. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq added 0.57%.
Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had gained 4.97% over the past month. This has outpaced the Utilities sector's gain of 3.09% and the S&P 500's gain of 0.1% in that time.
Wall Street will be looking for positivity from NEE as it approaches its next earnings report date. The company is expected to report EPS of $2.29, up 8.53% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.53 billion, up 11.4% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.35 per share and revenue of $17.89 billion, which would represent changes of +8.44% and +6.88%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for NEE. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.74% lower. NEE is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, NEE is holding a Forward P/E ratio of 24.51. This valuation marks a premium compared to its industry's average Forward P/E of 20.35.
Investors should also note that NEE has a PEG ratio of 3.11 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. The Utility - Electric Power industry currently had an average PEG ratio of 3.87 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 148, which puts 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.
To follow NEE in the coming trading sessions, be sure to utilize Zacks.com.
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