NextEra Energy (NEE) closed at $84.65 in the latest trading session, marking a -1.9% move from the prior day. This change lagged the S&P 500's 0.53% loss on the day. Elsewhere, the Dow saw a downswing of 0.9%, while the tech-heavy Nasdaq depreciated by 0.38%.
Shares of the parent company of Florida Power & Light Co. have appreciated by 6.01% over the course of the past month, outperforming the Utilities sector's gain of 2.63%, and the S&P 500's loss of 0.5%.
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 $0.67, reflecting a 26.42% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.81 billion, up 26.41% from the year-ago period.
NEE's full-year Zacks Consensus Estimates are calling for earnings of $3.68 per share and revenue of $27.87 billion. These results would represent year-over-year changes of +7.29% and +12.6%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for NextEra Energy. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, NextEra Energy holds a Zacks Rank of #3 (Hold).
Investors should also note NextEra Energy's current valuation metrics, including its Forward P/E ratio of 23.45. This signifies a premium in comparison to the average Forward P/E of 19.35 for its industry.
We can also see that NEE currently has a PEG ratio of 2.9. 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. By the end of yesterday's trading, the Utility - Electric Power industry had an average PEG ratio of 2.88.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 26% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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