NextEra Energy (NEE) closed the most recent trading day at $91.99, moving -3.28% from the previous trading session. This move lagged the S&P 500's daily loss of 0.54%. Elsewhere, the Dow saw an upswing of 0.03%, while the tech-heavy Nasdaq depreciated by 1.18%.
Coming into today, shares of the parent company of Florida Power & Light Co. had gained 8.61% in the past month. In that same time, the Utilities sector gained 9.38%, while the S&P 500 gained 0.58%.
Analysts and investors alike will be keeping a close eye on the performance of NextEra Energy in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.89, reflecting a 10.1% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $7.18 billion, reflecting a 14.87% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4 per share and revenue of $31.46 billion, which would represent changes of +7.82% and +14.76%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for NextEra Energy. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% higher. NextEra Energy presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, NextEra Energy is holding a Forward P/E ratio of 23.76. This valuation marks a premium compared to its industry average Forward P/E of 19.45.
Also, we should mention that NEE has a PEG ratio of 2.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Utility - Electric Power industry was having an average PEG ratio of 2.85.
The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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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