NextEra Energy (NEE) ended the recent trading session at $71.01, demonstrating a -0.38% swing from the preceding day's closing price. This change lagged the S&P 500's 0.01% gain on the day. Meanwhile, the Dow experienced a drop of 0.43%, and the technology-dominated Nasdaq saw an increase of 0.26%.
Prior to today's trading, shares of the parent company of Florida Power & Light Co. Had gained 1.05% over the past month. This has lagged the Utilities sector's gain of 2.66% and outpaced the S&P 500's loss of 2.26% in that time.
Investors will be eagerly watching for the performance of NextEra Energy in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.99, marking an 8.79% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.99 billion, up 21.92% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.68 per share and revenue of $29.76 billion, which would represent changes of +7.29% and +20.24%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for NextEra Energy. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% lower within the past month. Right now, NextEra Energy possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that NextEra Energy has a Forward P/E ratio of 19.39 right now. This signifies a premium in comparison to the average Forward P/E of 18.4 for its industry.
It's also important to note that NEE currently trades at a PEG ratio of 2.49. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Utility - Electric Power industry held an average PEG ratio of 2.66.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 129, putting it in the bottom 49% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.