The most recent trading session ended with NextEra Energy (NEE) standing at $72.81, reflecting a +1.27% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.55% gain on the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 0.63%.
The parent company of Florida Power & Light Co.'s shares have seen an increase of 3.17% over the last month, surpassing the Utilities sector's loss of 0.28% and falling behind the S&P 500's gain of 6.29%.
The investment community will be paying close attention to the earnings performance of NextEra Energy in its upcoming release. In that report, analysts expect NextEra Energy to post earnings of $0.99 per share. This would mark year-over-year growth of 3.13%. In the meantime, our current consensus estimate forecasts the revenue to be $7.25 billion, indicating a 19.44% growth compared to the corresponding quarter of the prior year.
NEE's full-year Zacks Consensus Estimates are calling for earnings of $3.68 per share and revenue of $29.12 billion. These results would represent year-over-year changes of +7.29% and +17.64%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for NextEra Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. At present, NextEra Energy boasts a Zacks Rank of #3 (Hold).
In terms of valuation, NextEra Energy is currently trading at a Forward P/E ratio of 19.57. This represents a premium compared to its industry's average Forward P/E of 17.98.
We can additionally observe that NEE currently boasts a PEG ratio of 2.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.66 based on yesterday's closing prices.
The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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