NextEra Energy, Inc. (NEE): A Bull Case Theory

We came across a bullish thesis on NextEra Energy, Inc. on Dividend Talks’s Substack. In this article, we will summarize the bulls’ thesis on NEE. NextEra Energy, Inc.'s share was trading at $69.42 as of June 30^th. NEE’s trailing and forward P/E were 26.00 and 18.90 respectively according to Yahoo Finance.

NextEra Energy (NEE), the world’s largest producer of wind and solar power, is a cornerstone in America’s energy transition. Operating through two primary segments—Florida Power & Light, a regulated utility, and NextEra Energy Resources, a clean energy leader—NEE has cemented its role as a key player in driving decarbonization across the U.S. energy grid. Over the past decade, the company has outperformed the S&P 500, highlighting its resilience and consistent value creation through renewables.

Despite its leadership and strong performance track record, NEE currently trades at a forward P/E of 18.3x, noticeably below its five-year average of 25.9x, suggesting an attractive valuation against historical norms. At a price of $70, it offers investors a 15% margin of safety, underpinned by a strong asset base, stable utility cash flows, and long-term tailwinds from clean energy policies. Wall Street consensus sees an 11% upside over the next year, implying a favorable risk/reward for long-term investors.

As regulatory support for clean energy accelerates and the U.S. grid continues its transition, NEE is well-positioned to benefit from secular trends while offering defensive utility exposure. Its current multiple compressions may reflect short-term macro pressures, but with its unmatched scale in renewables and a strong balance sheet, NextEra stands out as a compelling opportunity in the broader energy landscape.

Previously we covered a bullish thesis on PG&E Corporation (PCG) by Acid Investments in February 2025, which highlighted the market’s overreaction to wildfire concerns despite PCG having no direct liability. The company's stock price has depreciated by approximately 12% since our coverage. This is because the thesis didn’t fully play out. Dividend Talks shares a similar outlook but emphasizes NextEra’s clean energy leadership.

NEE isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of NEE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.