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

We came across a bullish thesis on NextEra Energy, Inc. on The Simple Side’s Substack. In this article, we will summarize the bulls’ thesis on NEE. NextEra Energy, Inc.'s share was trading at $86.29 as of November 28th. NEE’s trailing and forward P/E were 27.39 and 21.83 respectively according to Yahoo Finance.

NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. NEE continues to distinguish itself as the financial and operational benchmark for the U.S. utility and clean-power sector, delivering 9.7% year-over-year adjusted EPS growth to $1.13, supported by balanced contributions from Florida Power & Light and NextEra Energy Resources.

Management reaffirmed a 6–8% adjusted EPS growth outlook through 2027, underpinned by strong credit metrics and a regulatory environment that remains constructive as FPL expands its rate base at roughly 8% annually while keeping customer bills well below the national average.

The combination of FPL’s high-visibility regulated earnings and NEER’s large contracted portfolio creates a diversified engine that smooths cash flows across cycles. NEER added 3 GW of renewables and storage in the quarter, pushing its backlog to nearly 29.6 GW, while record storage origination and plans to restart the Duane Arnold nuclear facility under a 25-year PPA with Google highlight the company’s ability to deliver firm, clean, 24/7 power tailored to data-center and AI demand.

Leadership’s confidence in meeting the top end of guidance is echoed by bullish sell-side views, with valuation frameworks clustering in the mid-$90s to low-$100s per share based on blended DCF, SOTP, and premium utility multiples. The Duane Arnold restart alone could add about $0.16 to annual EPS once operational, reinforcing NextEra’s position as the go-to partner for hyperscalers.

Risks remain—backlog churn, permitting delays, elevated rates, and wind variability—but are buffered by $37 billion in hedges, strong regulated cash flows, and a diversified development pipeline. With steady execution, supportive policy tailwinds, and expanding clean-firm power solutions, NextEra’s long-term growth and rerating potential remain compelling.

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 fears despite PCG having no direct exposure. The company's stock price has appreciated approximately by 1.5% since our coverage. The thesis still stands as PCG’s fundamentals remain strong. The Simple Side shares a similar view but emphasizes NextEra’s diversified, high-visibility growth.

NextEra Energy, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held NEE at the end of the second quarter which was 75 in the previous quarter. While we acknowledge the potential of NEE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.