NextEra Energy (NEE) Gains As Market Dips: What You Should Know

NextEra Energy (NEE) closed at $92.41 in the latest trading session, marking a +1.59% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.28% for the day. On the other hand, the Dow registered a loss of 0.44%, and the technology-centric Nasdaq decreased by 0.28%.

Heading into today, shares of the parent company of Florida Power & Light Co. had lost 0.29% over the past month, lagging the Utilities sector's gain of 0.47% and outpacing the S&P 500's loss of 3.59%.

The upcoming earnings release of NextEra Energy will be of great interest to investors. The company is expected to report EPS of $0.92, down 7.07% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $7.22 billion, indicating a 15.6% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4 per share and a revenue of $31.46 billion, indicating changes of +7.82% and +14.76%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for NextEra Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.07% decrease. NextEra Energy is currently a Zacks Rank #3 (Hold).

In the context of valuation, NextEra Energy is at present trading with a Forward P/E ratio of 22.74. This expresses a premium compared to the average Forward P/E of 18.76 of its industry.

The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 36% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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NextEra Energy, Inc. (NEE): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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