NextEra Energy (NEE) closed at $84.01 in the latest trading session, marking a -2.13% move from the prior day. This change lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, added 0.86%.
Heading into today, shares of the parent company of Florida Power & Light Co. had lost 7.8% over the past month, lagging the Utilities sector's loss of 4.28% and the S&P 500's gain of 1.92%.
Analysts and investors alike will be keeping a close eye on the performance of NextEra Energy in its upcoming earnings disclosure. On that day, NextEra Energy is projected to report earnings of $1.13 per share, which would represent year-over-year growth of 7.62%. In the meantime, our current consensus estimate forecasts the revenue to be $7.97 billion, indicating a 18.96% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.01 per share and a revenue of $31.87 billion, signifying shifts of +8.09% and +16.27%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for NextEra Energy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.05% higher. Right now, NextEra Energy possesses a Zacks Rank of #3 (Hold).
In terms of valuation, NextEra Energy is presently being traded at a Forward P/E ratio of 21.41. Its industry sports an average Forward P/E of 18.2, so one might conclude that NextEra Energy is trading at a premium comparatively.
Investors should also note that NEE has a PEG ratio of 2.52 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Utility - Electric Power industry stood at 2.65 at the close of the market yesterday.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 38% 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.
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).