NextEra Energy (NEE) Exceeds Market Returns: Some Facts to Consider

NextEra Energy (NEE) ended the recent trading session at $72.35, demonstrating a +1.79% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.44%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 0.7%. Prior to today's trading, shares of the parent company of Florida Power & Light Co. had lost 6.87% lagged the Utilities sector's loss of 1.19% and the S&P 500's gain of 4.03%.The investment community will be paying close attention to the earnings performance of NextEra Energy in its upcoming release. The company is forecasted to report an EPS of $1.04, showcasing a 0.97% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.16 billion, up 7.88% from the year-ago period. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.68 per share and revenue of $28.64 billion, indicating changes of +7.29% and +15.72%, respectively, compared to the previous year. It is also important to note the recent changes to analyst estimates for NextEra Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, NextEra Energy is carrying a Zacks Rank of #2 (Buy). In the context of valuation, NextEra Energy is at present trading with a Forward P/E ratio of 19.32. This indicates a premium in contrast to its industry's Forward P/E of 17.77. Investors should also note that NEE has a PEG ratio of 2.45 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Utility - Electric Power was holding an average PEG ratio of 2.68 at yesterday's closing price. The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 58, putting it in the top 24% 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. Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com. Free Report: 3 Software Stocks Poised to SkyrocketSoftware stocks are poised to catapult higher in the coming months (and years) thanks to several factors, especially the explosive growth of AI. Zacks' urgent report reveals 3 top software stocks to own right now.Access the report free today >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks