NextEra Energy (NEE) closed the most recent trading day at $70.34, moving -1.48% from the previous trading session. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 0.31%.
Heading into today, shares of the parent company of Florida Power & Light Co. had gained 4.94% over the past month, outpacing the Utilities sector's gain of 0.83% and lagging the S&P 500's gain of 5.05%.
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 $1.03, reflecting a 7.29% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $7.25 billion, reflecting a 19.44% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.67 per share and revenue of $28.88 billion, which would represent changes of +7% and +16.67%, respectively, from the prior 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.07% lower within the past month. At present, NextEra Energy boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, NextEra Energy is holding a Forward P/E ratio of 19.43. This valuation marks a premium compared to its industry average Forward P/E of 17.9.
It's also important to note that NEE currently trades at a PEG ratio of 2.52. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Utility - Electric Power industry was having an average PEG ratio of 2.63.
The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 38% 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.
Be sure to follow all of these stock-moving metrics, and many 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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