NextEra Energy (NEE) ended the recent trading session at $73.78, demonstrating a -1.34% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.94%. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 1.52%.
The stock of parent company of Florida Power & Light Co. has fallen by 0.29% in the past month, lagging the Utilities sector's gain of 2.01% and the S&P 500's gain of 1.67%.
Analysts and investors alike will be keeping a close eye on the performance of NextEra Energy in its upcoming earnings disclosure. 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.
Investors might also notice recent changes to analyst estimates for NextEra Energy. Recent revisions tend to reflect the latest near-term business trends. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, NextEra Energy possesses a Zacks Rank of #3 (Hold).
In the context of valuation, NextEra Energy is at present trading with a Forward P/E ratio of 20.35. This represents a premium compared to its industry average Forward P/E of 18.
Also, we should mention that NEE has a PEG ratio of 2.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Utility - Electric Power industry stood at 2.63 at the close of the market yesterday.
The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 70, this industry ranks in the top 29% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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