Yahoo Finance NextEra Energy (NEE) Increases Yet Falls Behind Market: What Investors Need to Know
NextEra Energy (NEE) closed the latest trading day at $80.50, indicating a +0.26% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.45%.
Coming into today, shares of the parent company of Florida Power & Light Co. Had lost 1.11% in the past month. In that same time, the Utilities sector lost 0.74%, while the S&P 500 gained 5.41%.
Market participants will be closely following the financial results of NextEra Energy in its upcoming release. On that day, NextEra Energy is projected to report earnings of $1.01 per share, which would represent year-over-year growth of 7.45%. In the meantime, our current consensus estimate forecasts the revenue to be $8.17 billion, indicating a 13.88% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.40 per share and a revenue of $27.68 billion, signifying shifts of +7.26% and -1.55%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for NextEra Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.06% higher. Right now, NextEra Energy possesses a Zacks Rank of #3 (Hold).
In terms of valuation, NextEra Energy is currently trading at a Forward P/E ratio of 23.65. Its industry sports an average Forward P/E of 17.28, so one might conclude that NextEra Energy is trading at a premium comparatively.
One should further note that NEE currently holds a PEG ratio of 2.91. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Utility - Electric Power was holding an average PEG ratio of 2.78 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 52, this industry ranks in the top 21% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
