In This Article:
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.