In the latest close session, NextEra Energy (NEE) was down 2.48% at $72.06. This change lagged the S&P 500's 0.32% gain on the day. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq increased by 0.53%.
Shares of the parent company of Florida Power & Light Co. have appreciated by 4.09% over the course of the past month, outperforming the Utilities sector's gain of 1.72%, and the S&P 500's gain of 1.52%.
Investors will be eagerly watching for the performance of NextEra Energy in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.04, indicating a 0.97% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $8.16 billion, up 7.88% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.68 per share and a revenue of $28.64 billion, signifying shifts of +7.29% and +15.72%, respectively, from the last year.
Any recent changes to analyst estimates for NextEra Energy should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, NextEra Energy possesses a Zacks Rank of #3 (Hold).
In terms of valuation, NextEra Energy is currently trading at a Forward P/E ratio of 20.09. This signifies a premium in comparison to the average Forward P/E of 17.92 for its industry.
We can also see that NEE currently has a PEG ratio of 2.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Utility - Electric Power was holding an average PEG ratio of 2.72 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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