Yahoo Finance NextEra Energy (NEE) Surpasses Market Returns: Some Facts Worth Knowing
NextEra Energy (NEE) closed at $73.72 in the latest trading session, marking a +0.48% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.09%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.3%.
The the stock of parent company of Florida Power & Light Co. Has fallen by 4.32% in the past month, lagging the Utilities sector's loss of 3.42% and the S&P 500's gain of 3.38%.
The investment community will be closely monitoring the performance of NextEra Energy in its forthcoming earnings report. The company is expected to report EPS of $0.92, up 4.55% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.24 billion, down 1.47% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.40 per share and a revenue of $28.56 billion, signifying shifts of +7.26% and +1.6%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for NextEra Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% higher. As of now, NextEra Energy holds a Zacks Rank of #3 (Hold).
With respect to valuation, NextEra Energy is currently being traded at a Forward P/E ratio of 21.57. Its industry sports an average Forward P/E of 14.94, so one might conclude that NextEra Energy is trading at a premium comparatively.
It's also important to note that NEE currently trades at a PEG ratio of 2.51. 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. As the market closed yesterday, the Utility - Electric Power industry was having an average PEG ratio of 2.53.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 38% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
