Should I invest now into stock NEP for short or long term growth? Use technical and foundamental analysis.
11/17/2024 11:52am
**NextEra Energy (NEP) does not present a strong case for immediate investment**, whether for the short or long term, based on both technical and fundamental analysis.
1. **Fundamental Analysis**:
- **Financial Performance**: NEP's recent financials show a decline in net income and diluted EPS, with a net loss of $83 million and a diluted EPS of $-0.43 for the period ending Q3 2024. The company's net income has decreased by 162.88% and its diluted EPS has decreased by 165.15% compared to the previous year.
- **Revenue Growth**: Despite a positive revenue growth rate of 3.57%, the significant decline in net income and EPS suggests that the company is facing challenges in translating revenue growth into profitability.
- **Valuation Metrics**: NEP's P/E ratio stands at 5.69, which is relatively high, indicating that the stock may be overvalued compared to its earnings. The P/B ratio is 0.45, suggesting that the market may have lower expectations for the company's future growth based on its book value.
- **Long-term Outlook**: NEP has a history of revenue growth with a CAGR of 22.19% over the past three years. The company's focus on renewable energy and its ambitious expansion plans could position it well for long-term growth. However, the current financial data and market conditions do not strongly support an immediate investment.
|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|code|market_code|
|---|---|---|---|---|---|---|---|
|NEP.N|Nextera Energy|2023 Q4|6.0E7|1.48E8||NEP|169|
|NEP.N|Nextera Energy|2024 Q1|2.57E8|3.5E7|0.75|NEP|169|
|NEP.N|Nextera Energy|2024 Q2|3.6E8|5.8E7|0.66|NEP|169|
|NEP.N|Nextera Energy|2024 Q3|3.19E8|-8.3E7|-0.43|NEP|169|
|Ticker|Name|Date|Total Revenue YoY|code|market_code|
|---|---|---|---|---|---|
|NEP.N|Nextera Energy|20231231|150|NEP|169|
|NEP.N|Nextera Energy|20240331|4.8979591836734695|NEP|169|
|NEP.N|Nextera Energy|20240630|22.866894197952217|NEP|169|
|NEP.N|Nextera Energy|20240930|3.571428571428571|NEP|169|
|Ticker|Name|Date|Net Income YoY|code|market_code|
|---|---|---|---|---|---|
|NEP.N|Nextera Energy|20231231|722.2222222222223|NEP|169|
|NEP.N|Nextera Energy|20240331|123.17880794701988|NEP|169|
|NEP.N|Nextera Energy|20240630|-34.831460674157306|NEP|169|
|NEP.N|Nextera Energy|20240930|-162.87878787878788|NEP|169|
|Ticker|Name|Date|Diluted EPS YoY|code|market_code|
|---|---|---|---|---|---|
|NEP.N|Nextera Energy|20240331|541.1764705882352|NEP|169|
|NEP.N|Nextera Energy|20240630|24.528301886792452|NEP|169|
|NEP.N|Nextera Energy|20240930|-175.43859649122808|NEP|169|
|Ticker|Name|Date|Total Revenue (FY)|code|market_code|
|---|---|---|---|---|---|
|NEP.N|Nextera Energy|2021|7.22E8|NEP|169|
|NEP.N|Nextera Energy|2022|9.69E8|NEP|169|
|NEP.N|Nextera Energy|2023|1.078E9|NEP|169|
|Ticker|Name|Date|Net Income|code|market_code|
|---|---|---|---|---|---|
|NEP.N|Nextera Energy|2021 Q4|-3.9E7|NEP|169|
|NEP.N|Nextera Energy|2022 Q1|3.33E8|NEP|169|
|NEP.N|Nextera Energy|2022 Q2|5.38E8|NEP|169|
|NEP.N|Nextera Energy|2022 Q3|2.32E8|NEP|169|
|NEP.N|Nextera Energy|2022 Q4|1.8E7|NEP|169|
|NEP.N|Nextera Energy|2023 Q1|-1.51E8|NEP|169|
|NEP.N|Nextera Energy|2023 Q2|8.9E7|NEP|169|
|NEP.N|Nextera Energy|2023 Q3|1.32E8|NEP|169|
|NEP.N|Nextera Energy|2023 Q4|1.48E8|NEP|169|
|NEP.N|Nextera Energy|2024 Q1|3.5E7|NEP|169|
|Ticker|Name|Date|Diluted EPS|code|market_code|
|---|---|---|---|---|---|
|NEP.N|Nextera Energy|2022 Q1|1.72|NEP|169|
|NEP.N|Nextera Energy|2022 Q2|2.61|NEP|169|
|NEP.N|Nextera Energy|2022 Q3|0.93|NEP|169|
|NEP.N|Nextera Energy|2023 Q1|-0.17|NEP|169|
|NEP.N|Nextera Energy|2023 Q2|0.53|NEP|169|
|NEP.N|Nextera Energy|2023 Q3|0.57|NEP|169|
|NEP.N|Nextera Energy|2024 Q1|0.75|NEP|169|
|NEP.N|Nextera Energy|2024 Q2|0.66|NEP|169|
|NEP.N|Nextera Energy|2024 Q3|-0.43|NEP|169|
|Ticker|Name|Date|P/E(TTM)|code|market_code|
|---|---|---|---|---|---|
|NEP.N|Nextera Energy|20240102|14.41629|NEP|169|
|NEP.N|Nextera Energy|20240103|14.00533|NEP|169|
|NEP.N|Nextera Energy|20240104|13.69244|NEP|169|
|NEP.N|Nextera Energy|20240105|13.81853|NEP|169|
|NEP.N|Nextera Energy|20240108|14.29487|NEP|169|
|NEP.N|Nextera Energy|20240109|14.04736|NEP|169|
|NEP.N|Nextera Energy|20240110|13.78117|NEP|169|
|NEP.N|Nextera Energy|20240111|13.47762|NEP|169|
|NEP.N|Nextera Energy|20240112|13.48696|NEP|169|
|NEP.N|Nextera Energy|20240116|12.99661|NEP|169|
|Ticker|Name|Date|Price to Book Ratio|code|market_code|
|---|---|---|---|---|---|
|NEP.N|Nextera Energy|20240102|0.8163777008746108|NEP|169|
|NEP.N|Nextera Energy|20240104|0.7753869190036796|NEP|169|
|NEP.N|Nextera Energy|20240105|0.7825272487489385|NEP|169|
|NEP.N|Nextera Energy|20240108|0.8095018277865836|NEP|169|
|NEP.N|Nextera Energy|20240109|0.7954856249532974|NEP|169|
|NEP.N|Nextera Energy|20240110|0.7804115954910842|NEP|169|
|NEP.N|Nextera Energy|20240111|0.7632219127710161|NEP|169|
|NEP.N|Nextera Energy|20240112|0.7637508260854797|NEP|169|
|NEP.N|Nextera Energy|20240116|0.7359828770761393|NEP|169|
|NEP.N|Nextera Energy|20240117|0.7060992748089443|NEP|169|
|Ticker|Name|Date|P/S|code|market_code|
|---|---|---|---|---|---|
|NEP.N|Nextera Energy|20240102|2.1249477533325147|NEP|169|
|NEP.N|Nextera Energy|20240103|2.0643726311124757|NEP|169|
|NEP.N|Nextera Energy|20240104|2.018252935785855|NEP|169|
|NEP.N|Nextera Energy|20240105|2.0368384846488214|NEP|169|
|NEP.N|Nextera Energy|20240108|2.1070505581311396|NEP|169|
|NEP.N|Nextera Energy|20240109|2.0705678140667976|NEP|169|
|NEP.N|Nextera Energy|20240110|2.0313316553560905|NEP|169|
|NEP.N|Nextera Energy|20240111|1.9865886673526525|NEP|169|
|NEP.N|Nextera Energy|20240112|1.987965374675835|NEP|169|
|NEP.N|Nextera Energy|20240116|1.9156882402087427|NEP|169|
2. **Technical Analysis**:
- **Oversold Condition**: NEP's stock entered oversold territory, with an RSI reading of 26.9. This could indicate a potential buying opportunity if the trend reverses, but it also suggests that the stock has been under significant selling pressure.
- **Market Sentiment**: The stock's performance and technical indicators do not currently point to a strong buying opportunity. Investors should be cautious and consider the broader market sentiment and conditions before making a decision.
3. **Additional Considerations**:
- **Recent Sales**: A representative recently sold shares of NEP, which could be interpreted as a lack of confidence in the company's short-term prospects.
- **Industry Position**: NEP's position as a leader in sustainable energy solutions and its ambitious expansion plans could be advantageous in the long term. However, the immediate financial data and market indicators do not strongly support an investment decision at this time.
In conclusion, while NEP's long-term prospects appear promising due to its focus on renewable energy and growth plans, the current financial and technical indicators do not provide a strong basis for an immediate investment. Investors should closely monitor the company's financial performance, market conditions, and any strategic developments before making a decision.
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