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NextEra Energy (NEE) Increases Yet Falls Behind Market: What Investors Need to Know

NextEra Energy (NEE) closed at $58.48 in the latest trading session, marking a +0.21% move from the prior day. This change lagged the S&P 500's 0.38% gain on the day. Meanwhile, the Dow experienced a rise of 1.47%, and the technology-dominated Nasdaq saw a decrease of 0.23%.

The parent company of Florida Power & Light Co.'s shares have seen a decrease of 0.12% over the last month, not keeping up with the Utilities sector's gain of 7.47% and the S&P 500's gain of 10.72%.

Market participants will be closely following the financial results of NextEra Energy in its upcoming release. On that day, NextEra Energy is projected to report earnings of $0.53 per share, which would represent year-over-year growth of 3.92%. Alongside, our most recent consensus estimate is anticipating revenue of $6.24 billion, indicating a 1.23% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.12 per share and revenue of $27.65 billion, indicating changes of +7.59% and +31.93%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for NextEra Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. NextEra Energy is currently a Zacks Rank #3 (Hold).

Digging into valuation, NextEra Energy currently has a Forward P/E ratio of 18.7. This indicates a premium in contrast to its industry's Forward P/E of 15.58.

We can also see that NEE currently has a PEG ratio of 2.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Utility - Electric Power industry had an average PEG ratio of 2.88.

The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 24% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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