Is NextEra the Best AI Energy Stock to Buy Before Earnings?

Wall Street loves the artificial intelligence energy trade that spans nuclear, electrification, solar, and beyond. Tons of AI energy stocks have already soared over the past several years and in the early weeks of 2026.

One potential best-in-class AI energy stock, NextEra Energy, trades 10% below its 2021 highs and is on the verge of a potential technical breakout heading into its Q4 earnings release on Tuesday, January 27.

NextEra Energy NEE is one of the largest electric power and energy infrastructure companies in the U.S.

The stock has also crushed the S&P 500 over the past 25 years, while boasting strong earnings and revenue growth, exceptional value, dividends (2.7% yield), and breakout potential.

NextEra is growing its portfolio across solar, battery storage, and nuclear, helping investors buy into one of the biggest Wall Street megatrends: the AI Energy Trade. NEE’s upward earnings revisions also help it earn a Zacks Rank #2 (Buy) right now.

Why NextEra is a Great Buy and Hold AI Energy Stock

NextEra is a Wall Street titan and an energy powerhouse. The $174 billion market cap firm is by far the largest holding in the State Street Utilities Select Sector SPDR ETF (XLU). NEE is also one of roughly 70 S&P 500 Dividend Aristocrats, meaning it’s paid and raised dividends for at least 25 straight years.

NEE’s NextEra Energy Resources division is one of the biggest electric power and energy infrastructure companies in the world. Its Florida Power & Light segment is one of the largest electric utilities in the U.S.

All in, NEE is one of the largest producers of wind and solar energy on the planet, a battery storage leader, and an under-the-radar nuclear energy standout. Plus, FPL “continues to operate and invest in the nation's largest gas-fired fleet,” which is an area that the AI hyperscalers such as Meta love, alongside nuclear.

Given this backdrop, it makes sense that NextEra stock has soared 1,050% in the past 25 years to blow away the S&P 500’s 450%. Despite this run, NEE shares are trading almost exactly where they were five years ago, while the S&P 500 charged over 80% higher.

The renewable energy and Florida-based utility powerhouse underperformed over the last five years as Wall Street grew concerned about slowing earnings and dividend growth, as well as the possibility that some of the beneficial government subsidies for renewable energy would disappear.

On top of that, higher interest rates made utility stocks less attractive. Thankfully, NextEra said last quarter that its “long-term financial expectations remain unchanged,” and the Fed is set to continue lowering its core interest rate in 2026.

Electricity demand is set to grow by ~25% by 2030 and ~75% by 2050, driven by AI data center expansion, electrification across the economy, reshoring, and more.  

Speaking of, NextEra’s AI energy credentials are growing. NEE in late October announced, “two transformative agreements with Google, which will strengthen U.S. nuclear leadership and help meet growing energy demand from artificial intelligence with clean, reliable nuclear energy.”

NextEra’s deal with Google GOOGL will help NEE restart the Duane Arnold Energy Center, Iowa's only nuclear facility, with the AI hyperscaler then set to purchase power from the nuclear plant. NEE’s AI-heavy nuclear deal are similar to ones that Constellation Energy CEG landed with Meta and Microsoft.

NEE then, in December, told Wall Street that it expects to add 15 gigawatts of new power generation for data centers by 2035 (and upwards of 30 GWs) via deals with Google, Meta, Exxon Mobil, and beyond. These recent moves cement its bull case as a sleeping giant in the AI energy trade.

Buy NextEra Before Its Soars in 2026?

The energy giant is projected to grow its revenue by 12% in 2025 and 16% in 2026, helping boost its adjusted earnings by 8% in both periods.

NextEra’s near-term EPS growth outlook is part of a longer-term growth outlook that extends over the next several years (see chart above). NEE’s upward earnings revisions also help it earn a Zacks Rank #2 (Buy), and it’s beaten on the bottom line for five years in a row.

NextEra is up 215% in the past 10 years to blow away the Zacks Utilities sector’s 65% climb. Yet, it trades 10% below its 2021 highs after moving sideways over the past five years, while Utilities jumped 33%.

The stock is on the verge of overtaking the top of its five-year trading range after finding buyers at its 21-week moving average several times in the past month.

A strong report and positive guidance could help it finally break out of its holding pattern and hit new highs.

NextEra might be even more compelling to investors because it trades at 40% discount to its highs and at its 15-year median at 20.8X forward 12-month earnings. It also trades at only a 27% premium to Utilities despite climbing 525% in the past 15 years vs. the sector’s 72%.

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This article originally published on Zacks Investment Research (zacks.com).

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