NextEra Energy (NEE) closed the most recent trading day at $77.88, moving +2.1% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 0.45%.
Heading into today, shares of the parent company of Florida Power & Light Co. had lost 8.57% over the past month, lagging the Utilities sector's loss of 5.94% and the S&P 500's gain of 0.84%.
The upcoming earnings release of NextEra Energy will be of great interest to investors. The company is predicted to post an EPS of $1.2, indicating a 6.19% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.05 billion, up 13.65% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.02 per share and a revenue of $30.93 billion, signifying shifts of +8.36% and +12.84%, respectively, from the last 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. NextEra Energy is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, NextEra Energy is holding a Forward P/E ratio of 19. Its industry sports an average Forward P/E of 16.68, so one might conclude that NextEra Energy is trading at a premium comparatively.
Investors should also note that NEE has a PEG ratio of 2.36 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NEE's industry had an average PEG ratio of 2.46 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 112, finds itself in the top 46% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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NextEra Energy, Inc. (NEE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).