NextEra Energy (NEE) ended the recent trading session at $80.29, demonstrating a -1.27% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 1.16%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1.81%.
Coming into today, shares of the parent company of Florida Power & Light Co. had lost 3.92% in the past month. In that same time, the Utilities sector lost 3.83%, while the S&P 500 gained 1.03%.
The investment community will be closely monitoring the performance of NextEra Energy in its forthcoming earnings report. In that report, analysts expect NextEra Energy to post earnings of $0.64 per share. This would mark year-over-year growth of 20.75%. Our most recent consensus estimate is calling for quarterly revenue of $6.67 billion, up 23.85% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.7 per share and a revenue of $27.6 billion, representing changes of +7.87% and +11.52%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for NextEra Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.14% increase. NextEra Energy is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note NextEra Energy's current valuation metrics, including its Forward P/E ratio of 22. This denotes a premium relative to the industry average Forward P/E of 18.51.
Also, we should mention that NEE has a PEG ratio of 2.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Utility - Electric Power industry was having an average PEG ratio of 2.67.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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