NextEra Energy (NEE) closed at $91.13 in the latest trading session, marking a -1.59% move from the prior day. This move lagged the S&P 500's daily loss of 0.57%. Meanwhile, the Dow lost 1.61%, and the Nasdaq, a tech-heavy index, lost 0.26%.
Shares of the parent company of Florida Power & Light Co. witnessed a gain of 2.92% over the previous month, trailing the performance of the Utilities sector with its gain of 6.74%, and outperforming the S&P 500's loss of 0.15%.
The investment community will be paying close attention to the earnings performance of NextEra Energy in its upcoming release. The company is predicted to post an EPS of $0.89, indicating a 10.1% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $7.18 billion, indicating a 14.87% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4 per share and revenue of $31.46 billion. These totals would mark changes of +7.82% and +14.76%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for NextEra Energy. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. As of now, NextEra Energy holds a Zacks Rank of #3 (Hold).
In terms of valuation, NextEra Energy is presently being traded at a Forward P/E ratio of 23.12. Its industry sports an average Forward P/E of 19.1, so one might conclude that NextEra Energy is trading at a premium comparatively.
The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 35% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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