In the latest trading session, NextEra Energy (NEE) closed at $70.48, marking a -0.62% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.67% for the day. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 0.87%.
The parent company of Florida Power & Light Co.'s stock has climbed by 0.1% in the past month, falling short of the Utilities sector's gain of 1.94% and outpacing the S&P 500's loss of 5.28%.
Market participants will be closely following the financial results of NextEra Energy in its upcoming release. The company's earnings per share (EPS) are projected to be $0.99, reflecting an 8.79% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $7.04 billion, indicating a 22.89% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.67 per share and a revenue of $29.75 billion, indicating changes of +7% and +20.21%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for NextEra Energy. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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 has moved 0.07% lower within the past month. Currently, NextEra Energy is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that NextEra Energy has a Forward P/E ratio of 19.31 right now. Its industry sports an average Forward P/E of 18.5, so one might conclude that NextEra Energy is trading at a premium comparatively.
Meanwhile, NEE's PEG ratio is currently 2.48. 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. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.82 based on yesterday's closing prices.
The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 55, this industry ranks in the top 23% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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