NextEra Energy (NEE) closed the most recent trading day at $69.86, moving -2.29% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.13% for the day. Elsewhere, the Dow lost 0.27%, while the tech-heavy Nasdaq lost 0.07%.
Coming into today, shares of the parent company of Florida Power & Light Co. had lost 5.57% in the past month. In that same time, the Utilities sector lost 0.17%, while the S&P 500 gained 2.71%.
The investment community will be closely monitoring the performance of NextEra Energy in its forthcoming earnings report. The company's upcoming EPS is projected at $1.04, signifying a 0.97% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.16 billion, indicating a 7.88% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.68 per share and revenue of $28.64 billion, indicating changes of +7.29% and +15.72%, respectively, compared to the previous year.
Any recent changes to analyst estimates for NextEra Energy should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, NextEra Energy is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, NextEra Energy is currently exchanging hands at a Forward P/E ratio of 19.44. This represents a premium compared to its industry average Forward P/E of 17.92.
It is also worth noting that NEE currently has a PEG ratio of 2.46. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Utility - Electric Power industry currently had an average PEG ratio of 2.69 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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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