NextEra Energy (NEE) Stock Sinks As Market Gains: What You Should Know
NextEra Energy (NEE) closed the most recent trading day at $274.33, moving -0.38% from the previous trading session. This change lagged the S&P 500's daily gain of 0.84%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 2.51%.
Heading into today, shares of the parent company of Florida Power & Light Co. Had gained 10.63% over the past month, outpacing the Utilities sector's gain of 0.18% and the S&P 500's gain of 3.73% in that time.
Investors will be hoping for strength from NEE as it approaches its next earnings release, which is expected to be July 24, 2020. In that report, analysts expect NEE to post earnings of $2.50 per share. This would mark year-over-year growth of 6.38%. Meanwhile, our latest consensus estimate is calling for revenue of $5.27 billion, up 6.03% from the prior-year quarter.
NEE's full-year Zacks Consensus Estimates are calling for earnings of $9.10 per share and revenue of $20.59 billion. These results would represent year-over-year changes of +8.72% and +7.21%, respectively.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.42% 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 30.25 right now. This represents a premium compared to its industry's average Forward P/E of 18.15.
Also, we should mention that NEE has a PEG ratio of 3.85. 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 was holding an average PEG ratio of 3.65 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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