Can NEE Stock's Diverse Generation Mix Boost Long-Term Growth Outlook?

NextEra Energy NEE benefits from a well-balanced generation portfolio that positions it for sustainable long-term growth. The company operates one of the largest renewable energy businesses in the world, with a leading presence in wind and solar power. NextEra is consistently expanding its renewable footprint and securing long-term contracts that provide stable and predictable cash flows. In 2024, NextEra’s unit Florida Power and Light used natural gas, solar, nuclear and other sources, which contributed 69%, 20%, 10% and 1%, respectively, to its generation. Another unit, Energy Resources, used wind, nuclear, solar and other sources, which contributed 64%, 17% 15% and 4%, respectively, to its generation. NextEra’s natural gas generation assets play a vital role in ensuring reliability and grid stability. While wind and solar are variable sources, natural gas plants provide dependable baseload and peaking capacity that balances fluctuations in renewable output. This integration of renewables with conventional resources allows NextEra to deliver consistent power, meet regulatory requirements and respond to customer demand effectively. Nuclear generation further strengthens NextEra’s portfolio, providing carbon-free baseload power that supports its long-term decarbonization strategy. Nuclear plants ensure a steady supply of electricity that complements intermittent renewable sources and reduces reliance on fossil fuels. NextEra’s multiple fuel-based generation assets reduce risk, support customer needs and align with national energy transition goals. This integrated strategy not only secures consistent earnings growth but also makes NextEra a key contributor in shaping the future of the U.S. power sector.Utilities Gain From Fuel Diversity in Power GenerationUtilities with multiple fuel-based generation assets gain resilience against fuel price volatility, enhance grid reliability and optimize operations. This diversified mix ensures stable earnings, regulatory compliance and long-term competitiveness while supporting the transition toward cleaner, low-carbon energy solutions.Companies like Duke Energy DUK and Dominion Energy D benefit significantly from operating with multiple fuel-based generation assets. Duke leverages coal, natural gas, nuclear and renewables to balance affordability with sustainability, while Dominion combines natural gas, solar and nuclear to enhance reliability and growth. This fuel diversity helps both utilities mitigate risks, maintain stable earnings and support long-term decarbonization goals.NEE’s Price PerformanceNextEra’s shares have gained 11.8% in the past three months compared with the Zacks Utility Electric-Power industry’s rise of 1.6%.Image Source: Zacks Investment ResearchNEE Stock Returns Better Than Its IndustryNextEra’s trailing 12-month return on equity (“ROE”) is 12.31%, ahead of the industry average of 10.14%. ROE is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.Image Source: Zacks Investment ResearchNextEra’s Earnings Estimates Up Y/YNextEra expects its 2025 earnings per share to be in the range of $3.45-$3.70 compared with $3.43 a year ago. The Zacks Consensus Estimate for NEE’s 2025 and 2026 earnings per share indicates year-over-year growth of 7.29% and 7.88%, respectively. NextEra expects to increase its earnings per share in the range of 6-8% annually through 2027 from the 2024 level.Image Source: Zacks Investment ResearchNEE’s Zacks RankNextEra currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report Duke Energy Corporation (DUK): Free Stock Analysis Report Dominion Energy Inc. (D): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks