NextEra Energy (NEE) Surpasses Market Returns: Some Facts Worth Knowing

In the latest trading session, NextEra Energy (NEE) closed at $84.06, marking a +1.16% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 1.06%. Elsewhere, the Dow saw an upswing of 1.18%, while the tech-heavy Nasdaq appreciated by 1.4%.

Heading into today, shares of the parent company of Florida Power & Light Co. had lost 3.27% over the past month, outpacing the Utilities sector's loss of 4.18% and lagging the S&P 500's gain of 2.46%.

The investment community will be closely monitoring the performance of NextEra Energy in its forthcoming earnings report. On that day, NextEra Energy is projected to report earnings of $1.23 per share, which would represent year-over-year growth of 8.85%. Meanwhile, our latest consensus estimate is calling for revenue of $9.19 billion, up 15.4% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.01 per share and a revenue of $31.7 billion, representing changes of +8.09% and +15.62%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for NextEra Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% increase. NextEra Energy presently features a Zacks Rank of #3 (Hold).

With respect to valuation, NextEra Energy is currently being traded at a Forward P/E ratio of 20.71. This signifies a premium in comparison to the average Forward P/E of 17.35 for its industry.

It's also important to note that NEE currently trades at a PEG ratio of 2.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. NEE's industry had an average PEG ratio of 2.62 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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

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This article originally published on Zacks Investment Research (zacks.com).

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